BMW to PSA: “You Owe us 50 Million Euros”

Most MINI fans are well aware that BMW Group and PSA partnered on the Prince family of engines found in the current R5X generation of MINIs. BMW did the engineering and handles the manufacturing, and PSA ponied up some development dollars and helps with supply chain logistics. In return, PSA got access to the engines for their own cars and BMW got to develop a more efficient engine for the MINI that didn’t involve Daimler. That relationship worked well for both parties, so BMW and PSA had worked out a separate agreement to develop and share hybrid drivetrains in partnership with PSA. This agreement included a joint-venture manufacturing facility and, like the Prince arrangement, PSA would have access to the systems BMW would develop.

TopSpeed.com is reporting that since that hybrid deal was inked, PSA has stepped away from it and formed a separate deal with General Motors to develop hybrid tech. BMW, meanwhile, is calling financial shenanigans, claiming that PSA still owes them their share of the original arrangement — to the tune of €50 Million (about $65M in US dollars). As TopSpeed points out, the european auto industry isn’t in any better a financial situation overall than the US auto industry, so €50M is not a sum of money BMW can just write off, nor is it something PSA is likely to part with easily. PSA has yet to respond to BMW’s demands.

TopSpeed goes on to speculate whether the BMW i3 and i8 cars were specifically part of this PSA joint venture and whether turbulence in that relationship is leading to delays in i-car production. To our knowledge this isn’t going to impact those cars as all the work was done internally at BMW. Much more interesting to us is the impact of the of the hybrid drive destined for the R60 series of MINIs. We would suspect that this deals a serious blow to those plans. Perhaps this makes the case for bringing a diesel Countryman or Paceman to the US.

[Source: TopSpeed]

Written By: Nathaniel Salzman

  • Gary

    Despite the potential impact of the BMW-PSA rift on plans for a hybrid R60, it’s a massive stretch to say this is justification for marketing a diesel version in the U.S. Some studies (link below) show that the target demographic willing to consider a diesel is vastly different to that seeking a hybrid, with almost twice as many consumers willing to shell out for a hybrid over a diesel. It could happen, but it would take a complete marketing strategy paradigm shift within BMW corporate.


  • http://www.facebook.com/scamper Scamper Robinson

    This would definitely be bad news for me. I’ve been waiting for a Mini hybrid for years, and the prospect of buying another gas-burner is about as meaningless as buying an 8-track tape player. I’ll enjoy my 2003 Mini as long as I can, but I’ll have to look elsewhere when it’s time to upgrade. If we’re inferring correctly.

  • Hemisedan

    A hybrid? Why? My 2011 JCW gets better average mpg than my daughters Toyota Hybrid. A better option is still the diesel, and for me a hi performance version.

  • Hemisedan

    Maybe for the Countryman it might not be a bad deal, in thinking furtrher.

Sort by MINI model

MotoringFile on Instagram

MINI Model Cheat Sheet

1st Gen MINI
R50: One & MC Hatch
R52: All 1st Gen MINI Convt.
R53: MCS Hatch
2nd Gen MINI
R55: Clubman
R56: Hatch
R57: Convertible
R58: Coupe
R59: Roadster
R60: MINI Crossover
R61: MINI Crossover Coupe
3rd Gen MINI
F54: Clubman
F55: Five Door Hatch
F56: Hatch
F57: Convertible
F60: MINI Crossover
F58: Traveller

Advertise with MotoringFile

If you or your company are interested in advertising on the most influential MINI website in the world, please visit our Advertising section. If you have further questions about becoming a sponsor or would like to see our rate sheet please feel free to contact us directly.
mini mini
Translate MotoringFile with Google: 
2015 F56 JCW

MotoringFile Buyers Guides

R50 ('02-'06 MC) Buyers Guide
R53 ('02-'06 MCS) Buyers Guide



MotoringFile Reviews

'12 JCW Coupe
'11 Fiat 500 Sport
'11 Tesla Roaster 2.5 '11 Countryman Comparo
'11 Cooper S Hatch
'11 Countryman MCS (FWD)
'11 Countryman MC (auto)
'10 Mayfair MCS (auto)
'11 Countryman MCS (ALL4)
'10 MINI E
'10 Tesla Roadster Sport
'09 Cooper S Convertible
'09 JCW Hatch
'09 JCW Clubman
JCW Stage I vs JCW Stage II
'08 Clubman S (Auto)
1st Drive: '08 MINI Clubman
'08 Smart Fourtwo
Comparison: '08 BMW 135i
'06 R53 MCS vs '07 R56 MCS
'07 R56 JCW (Stage 1)
'07 MINI Cooper S Long Term
'07 BMW Z4 M Coupe
'07 MINI Cooper & Cooper S
Audio: '07 MC/MCS at the Track
'06 JCW GP Long term
Reader Review: JCW GP
'06 JCW Cooper S Long Term
Comparison: '06 Lotus Elise
Comparison: '06 Mazda MX5
Comparison: '06 UK Focus ST
Comparison: '06 Civic Si
Comparison: '04 TVR T350
Comparison: '06 Nissan 350z
Comparison: '06 VW GTI w/DSG
Podcast: Cooper S Auto
Podcast: BMW 325i
Podcast: JCW MC Soundkit
'04 JCW MINI Cooper Tuning Kit
'05 MCS: One Month Review
'05 MCS Auto
'05 JCW S 1st Drive
'05 MINI Cooper
'05 MCS Conv. Long Term
'05 MINI Cooper S
'05 MCS Cabrio 1st Drive
'04 JCW MCS First Drive
'04 MC w/JCW Tuning Kit
'04 MINI Cooper CVT
'02 MCS 3 year Review
Autocrossing the MINI Range