BMW in talks with Hyundai for jointly developing and sharing engines

07/05/2012 - 07:50 | ,  ,   | Kaustubh Shinde

Hyundai diesel engineIf just a decade ago this news would have hit the tabloids, everyone would have just raised their hands questioning the Bavarian giant for partnering with the Korean copy car maker.

I am sure you must have read our story on how Hyundai transformed itself from being a petrolhead’s joke to being one of the leading manufacturers in the world. And what better testimony to that achievement than the No. 1 luxury car maker in the world wanting to join hands with the rising Korean star.

Autonews reports that BMW and Hyundai are discussing an alliance to develop engines and share other technology. If the deal is successful, Hyundai will be BMW’s fourth successful automotive partnership after with PSA/Peugeot-Citroen, Toyota and Daimler.

German industry publication Automobil Produktion reported last Thursday that Hyundai Motor Group chairman Chung Mong-koo’s son and heir apparent, Chung Eui-sun, met top BMW managers in Munich to discuss sharing 1-2 billion euros ($1.3-$2.6 billion) engine development costs.

However, exactly what type of motors could result from the potential BMW-Hyundai partnership is currently a mystery. We think BMW and Hyundai should work together on ultra efficient 1L liter turbo diesel engines that could be plonked in BMW's small cars. Hyundai could also benefit from a 1L turbo diesel engine as the Korean automaker has a huge range of little hatchbacks that do not have a diesel engine such as i10, Eon etc. How about a bi-turbo 1-liter diesel engine that provides huge amounts of driving performance and fuel efficiency?

Let's also remember that Hyundai is equally successful in selling bigger cars such as the Verna, Elantra and Sonata. It has cars like the Genesis, Azera and Equus above the Sonata which may benefit from this partnership. At this moment the size of engines that are being considered for this partnership cannot be determined though one can be assured that downsizing is a global trend among manufacturers, either in luxury or in low-price segments.

While both parties are not interested in revealing the true picture, we will keep an eye out for any other advancements in this development.


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