The on and off again BMW and Mercedes engine deal appears to be back in negotiations. However now looks like the next MINI’s engine might not be the only technology they end up sharing. Here’s an excerpt from this week’s Automotive News Europe on the possible joint venture:

>”Discussions on the board member level about engine cooperation are currently taking place,” a manager familiar with the situation told Automobilwoche, Automotive News Europe’s sister publication. The discussions are not limited to four-cylinder engines for the Mercedes compact model, but encompass willingness by both carmakers to cooperate on bigger powertrains. Mercedes and BMW want to match the powertrain-development advantage Audi gets by being part of the much-larger Volkswagen group. Economies of scale are more important than ever in the ongoing climate-change debate.

Unlike the previous Tritec engine, the current Prince series of engines were designed and engineered solely by BMW in Munich. And at the time of developement, PSAs’ needs aligned well with MINIs’ and thus a partnership was created, economies of scale were generated, and everyone was happy. However it looks like PSAs’ requirements for its next generation of engines might not match up as well with what BMW wants for MINI (which will be direct injection and similar in design to the current Prince family of engines).

Automotive News goes on to quote a BMW Group official on the sharing of other potential MINI related components:

>”We’ve made the realization that we are so well set up that we’ll only be able to generate cost advantages with engines and gear boxes,” the source said.

Dual clutch gearbox anyone? Of course that’s purely speculation at this point but that is the type of technology that appears to be on the table.

However despite all of this, it looks like another partnership with PSA isn’t out of the running yet. Again from the Automotive News Europe article:

>The decision is expected by year’s end, so the BMW Mini engine that BMW manufactures together with Peugeot is still being considered.

You can read the rest below:

[ BMW, Mercedes negotiate over engine cooperation ] Automotive News Europe