Currently reading: BMW/PSA to form closer ties

Two firms will work together on new components

BMW’s chief financial officer has confirmed the German firm wants to strengthen its ties with PSA Peugeot-Citroen.

Friedrich Eichiner told a newspaper in Germany that the two firms would forge closer ties with PSA but he also distanced BMW from reports it would forge close bonds with rival Mercedes.

PSA and BMW already share engines, which BMW uses in its Mini range.

“Talks with PSA are about cooperation for components,” said Eichiner. Speaking about BMW and Mercedes, he said: “We wouldn't do ourselves a favour if the cars looked more and more alike.”

Eichiner refused to put a figure on how well BMW would perform through the economic downturn of 2009, but he did warn a further slump in the car industry could happen.

He did expect BMW to post a profit in 2009, but vehicle sales were likely to end up 10 to 15 per cent down on 2008’s levels.

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