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2,038 views February 28, 2008

BMW may supply engines to Fiat and GM

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BMW arguably builds some of the finest engines in the industry but the carmaker isn’t one to prevent other makes from using its powerplants. Only last week Citroen announced plans to use BMW engines in some of its cars and soon GM and Fiat could be doing the same.

Both GM and Fiat are currently in negotiations with BMW over a deal to procure engines and transmissions, according to the Financial Times Deutschland, citing sources at all three carmakers.

At the same time, BMW remains locked in talks with arch-rival Daimler over another engine deal, this time to supply compact engines for future Mercedes-Benz models including the next A and B-Class. According to the source, BMW still hopes to deepen its ties with Daimler but as yet no real progress has been made.

Carmakers across the globe are concerned about development costs for a new range of low-emissions powertrains, and the use of a single powertrain by a number of different makes would allow planners to spread costs and thus reduce the financial risk of developing new engines and powertrain technologies.