BMW Mulls Switching Partnership from PSA to Toyota

BMW AG may be shifting its partnership on powertrain development from PSA Peugeot Citroen to Toyota, according to media reports.

BMW and PSA said last week that they are re-evaluating their 50:50 joint venture to make hybrid vehicle components because of the French company's new tie-up with General Motors Co. GM and PSA agreed in February to share vehicle platforms, components and purchasing.

Meanwhile, BMW and Toyota are poised to announce plans to add new projects to their existing collaboration on diesel engines and battery research, according to Der Spiegel, which does not cite its sources.

The Nikkei, which also cites no sources, opines that Toyota will provide hybrid systems and fuel cell technology to BMW in exchange for access to the German company's expertise in lightweight carbon fiber materials.

BMW agreed in December to begin supplying 1.6- and 2.0-liter "clean" diesel engines to Toyota in 2014. The companies also are cooperating on next-generation lithium-ion batteries for hybrid and electric vehicles.