PSA Peugeot Citroen and BMW have revealed their plan to jointly produce a new small engine.
The two manufacturers will work together to build a range of four-cylinder petrol engines that will be used in Peugeot, Citroen and Mini cars. The engine will be machined exclusively at PSA's Douvrin plant in Northern France. Assembly will then be divided between there and BMW's Mini plant at Hams Hall, near Oxford.
Both company's are investing a total of €330 million in the new production line at Douvrin. It will be run by 1,120 workers and produce an engine every 26 seconds.
The Hams Hall plant will assemble engines for future variants of the top selling Mini. The company hopes the engine will reduce waiting times for new model variants of the city car too.