Are BMW & Hyundai planning joint engine development?

Are BMW & Hyundai talking engines?

Reports are rife that BMW and Hyundai are in talks about co-operation on development of a new range of engines.

The German press kicked it off yesterday and now Reuters have got in on the act with their own sources apparently confirming talks between BMW and Hyundai over the joint development of a new range of engines.

Even now, after Hyundai has joined the big league and proved it can make quality cars that compete head-on with the competition on more than just price, many will think such an alliance unthinkable. But there is certainly sense in the idea.

BMW has already said it is working on a new range of more efficient engines, but the costs for any car maker – no matter how successful – in developing from scratch are huge; the engine project is said to cost €1-2 billion – sharing that load makes sense, especially with a cash-rich Hyundai.

It makes even more sense when those sharing the development costs have little real customer crossover. BMW has already got joint ventures going for technology and development sharing with PSA (Peugeot/Citroen), Toyota and Daimler (and Brilliance in China) and a deal with Hyundai could make sense.

Automobil Produktion in Germany are claiming the son of Hyundai’s Chairman - Chung Eui-sun – has already met with BMW managers in Munich to discuss the plan, but Hyundai are saying talk of an alliance is ‘Groundless’ and BMW are saying ‘Further co-operation partners are not currently foreseen’.

Which, in PR speak, means ‘Mind your own business – we’re busy talking’.

By Cars UK