BMW CFO says to strengthen ties with Peugeot

• Source: Gasgoo.com
• [11:33 September 10 2009]
• Comments

German premium carmaker BMW plans to strengthen ties with French carmaker PSA Peugeot-Citroen, BMW Chief Financial Officer Friedrich Eichiner told German newspaper Handelsblatt in an interview.

"Talks with PSA are about a cooperation for components," Eichiner said in an interview to be published on Thursday, referring to, for example, air-conditioning compressors.

Peugeot already supplies diesel engines for BMW's Mini brand.

Eichiner said BMW was also still working on a purchasing cooperation with Daimler, but he cautioned that such efforts should be limited, so as not to threaten the BMW brand.

"We wouldn't do ourselves a favour if the cars looked more and more alike," he was quoted as saying.

BMW has so far refrained from giving an outlook for 2009 and Eichiner said that even though markets had stabilised, a fresh economic downturn was still possible.

Eichiner said he saw a chance to post profits with vehicle sales declines of 10 to 15 percent.

BMW group sales fell 17.7 percent in the period from January to August.

(Reuters)