BMW Group and PSA Peugeot Citroën have signed a letter of intent to assess a new extension of their cooperation on petrol engines.

According to a statement, they will jointly conduct a feasibility study concerning a new family of engines with advanced technology features aimed at delivering enhanced power and torque characteristics combined with reduced fuel consumption and CO2 emissions.

If the study confirms the expected technological, industrial and financial benefits the two companies intend to enter into a joint development project.

PSA Peugeot Citroën and BMW Group have already a cooperation agreement concerning the development and production of a family of 1.6 - litre turbocharged petrol engines, encompassing two technologies: fully variable valve drive and direct injection, with power ranking from 55kW (75hp) to 128kW (175hp). The engines power the newly launched MINI as well as Peugeot and Citroën vehicles.