The BMW Group and PSA Peugeot Citroën are to expand their successful cooperation by including hybrid componentsfor front-wheel-drive vehicles.
Both parties have agreed not to disclose financial details of the agreement.
The BMW Group and PSA Peugeot Citroën have been cooperating on engines for several years.
In February 2010, the two companies agreed to develop the next generation of their jointly designed four-cylinder petrol engine, which will also meet EU 6 requirements.
The joint engine is currently built into a number of Mini, Peugeot and Citroën brand models.