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Article: PSA outspent BMW on shared engine.(News)(Brief Article)
- Article from:
- Automotive News
- Article date:
- July 11, 2005
CopyrightCOPYRIGHT 2005 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Jens Meiners jmeiners@craincom.de
PSA/Peugeot-Citroen SA financed 80 percent of the $520 million investment for a new gasoline engine family that it will share with BMW AG.
Included is $400 million for a new assembly building at PSA and Renault's Francaise de Mecanique joint engine plant here. The other $120 million includes investment in other plants that supply the Douvrin plant.
PSA's greater financial burden is in line with the larger percentage of engines it will get from the joint project.
The r&d costs for the engine, which amounted to about $218 million, will be split.
Technological advances will be "100 ...