Peugeot-Citroen In Engine Joint Venture With BMW.

French car maker PSA Peugeot-Citroen said that it will invest EUR430 million ($464 million) in a new joint venture with Germany's Bayerische Motoren Werke AG, which will produce small gasoline engines. The engines will be manufactured in Peugeot's Douvrin plant, in France, and production will begin in late 2005, Peugeot said.

The production line will have a capacity of 2,500 engines a day, and will be used to equip the small and medium car models of the Peugeot and Citroen brands, as well as future BMW's Mini models. Eventually, around one million vehicles a year should be equipped with these engines. The joint venture between PSA Peugeot-Citroen and BMW was first announced in July 2002.