BMW Group and PSA Peugeot Citroën will continue to develop new four cylinder petrol engines together.

The two manufacturing groups signed a letter of intent to extend their co-operation and to conduct a feasibility study on a new family of engines yesterday.

PSA Peugeot Citroën and BMW Group already have a cooperation agreement concerning the development and production of a family of 1.6 litre turbocharged petrol engines, encompassing two technologies: fully variable valve drive and direct injection, with power ratings from 55kW (75hp) to 128kW (175hp). The engines power the newly launched MINI as well as Peugeot and Citroën vehicles.