BMW Group and PSA Peugeot Citroen have agreed to extend their co-operation into the development of petrol four-cylinder engines.

They will carry out a feasibility study concerning a new family of engines with advanced technology features aimed at maximising power power and torque while minimising 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 and BMW already have a co-operation 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 ratings from 55kW (75hp) to 128kW (175hp). The engines power the newly launched MINI as well as Peugeot and Citroen vehicles.