BMW, Hyundai to Partner on Engine Development?

BMW AG and Hyundai Motor Co. are discussing a possible tie-up to co-develop a new family of engines, according to Germany's Automobil Produktion.

The trade newsletter, which cites no sources, says BMW executives met in Munich recently with Hyundai Vice Chairman Chung Eui-sun. Discussions reportedly centered on ways the companies could share the $1.3 billion to $2.6 billion cost of designing and engineering the powerplants, according to the newsletter.

BMW declines comment about the report, and CEO Norbert Reithofer tells reporters that the company does not foresee any new partnerships.

Last October BMW opened a joint research center in Munich with PSA Peugeot Citroen to develop hybrid and electric powertrains based on current-generation technology. The company also signed a memorandum of understanding a month later with Toyota Motor Corp. to collaborate on "green" technologies, including batteries for electric vehicles. BMW agreed at the time to supply Toyota's European unit with 1.6- and 2.0-liter "clean" diesels beginning in 2014.