German carmaker BMW and South Korean carmaker Hyundai Motor are in talks on a tie-up on engines and other areas, a source who has direct knowledge of the matter told Reuters, without giving details.
In addition, German website Automobil Produktion said BMW and Hyundai were looking to spend a combined amount of between $1.3 billion and $2.6 billion on the development of a new engine family.
Hyundai Chairman Chung Mong-koo’s son and heir apparent, Chung Eui-sun, had met a small group of top BMW managers in Munich, the website said, without citing sources.
The report’s validity is unclear however, with BMW CEO Norbert Reithofer telling press in Europe this week that “further co-operation partners are currently not foreseen”.
However, BMW is also reportedly in talks with GM over the co-development of new hydrogen fuel cell technology.
BMW had said in March it was working on a new engine architecture that would improve economies of scale for its three, four and six-cylinder petrol and diesel engines.
BMW is also teaming up with Toyota in green car technology under which the German premium car maker will supply diesel engines to Toyota from 2014 in Europe and the pair will collaborate on lithium-ion battery research for electric cars.