BMW turns more and more into the world’s purveyor of engines. If recent talks are successful, BMW motors could power Hyundai cars. This according to a report in Germany’s industry publication Automobil Produktion.
The magazine reports that Chung Eui-Sun, Vice-Chairman of Hyundai Motor Company and only son of und Hyundai CEO Chung Mong-Koo, has been in Munich to start the talks.
BMW needs to put its engines into more than its own 1.7 million cars which BMW sold in 2011. The development of a new engine family costs between one and two billion Euro ($1.3 to 2.6 billion.) The 5.7 million units sold by Hyundai/Kia could deliver the desired scale effects.
BMW has engine alliances with PSA and Toyota. A cooperation with GM could be in the works. With so many partners, there also are ten times as many toes to step on. Both BMW and Hyundai officially deny any talks.
“Further co-operation partners are currently not foreseen,” BMW CEO Norbert Reithofer told Reuters. A Hyundai spokesman called speculations about meetings between senior company officials ” groundless.” Nevertheless, a source inside of BMW confirmed to Reuters that there are talks “in the early stages.”