[RemingtonSteele]

BMW, Hyundai in alliance talks on engines - Reuters

German premium carmaker BMW and South Korea's Hyundai Motor are discussing a possible tie-up in engine development and other areas, a source who has direct knowledge of the matter told Reuters.

German premium carmaker BMW and South Korea's Hyundai Motor are discussing a possible tie-up in engine development and other areas, a source who has direct knowledge of the matter told Reuters.
"The talks are at early stages," the source said on condition of anonymity because the talks were confidential.

Another source told Reuters that the two companies had discussed a "comprehensive alliance," including jointly developing an engine and sharing development costs equally. He said he had no knowledge of whether the talks were still underway.

Ref: Business News - Indian Stock Market, Stock Market News, Business & Finance, Market Statistics | Reuters India

[libranof1987]

The article is unclear - is the alliance for Hyundai to have access to BMW's engines or for BMW to get hold of Hyundai's power plants or both?

Both companies are very diverse in every possible way and quite out of each other's league to even attempt to encroach on each other's space.

Any way, this will turn out mighty surprising if it actually happens!

[Ford5]

I think it maybe for setting up plants together where Hyundai would manufacture engines on contract for BMW. Otherwise why would BMW of all car companies need to learn or co-develop engines with the koreans?

[VIPER_SRT]

Is it something that Chrysler and Diamler did back in time! Well Chrysler and Hyundai aren't same but this could be a recipe for disaster.

[aaggoswami]

Earlier it was Daimler, Mitsubishi and Hyundai entering into such engine sharing deal which was called Global Automotive alliance.

The earlier Sonata ( Embara ) motor was basically the same offered in Outlander.
Right now, IMO, BMW has made a mistake. No doubt, Hyundai has increased its diesel power and raised the bar, but others are not far behind. Also, BMW, Audi and Mercedes are quite good in diesel engines, so its a bit surprising that BMW has opted Hyundai for engine sharing.

In Dec 2011 in Tokya motor show, BMW and Toyota announced such alliance which was mainly for 1.6-2.0 ltr. engines being supplied to Toyota for Europe by BMW and in turn BMW would be getting Hybrid tech.

With Hyundai entering the deal, I wonder what reaction Toyota would give.

[mempheS.D]

Originally Posted by libranof1987

The article is unclear - is the alliance for Hyundai to have access to BMW's engines or for BMW to get hold of Hyundai's power plants or both?

If it's the former, then Hyundai's definitely gunning big.

If it's the latter, I would call it a perfect recipe for disaster!

[vvijay]

Here's the link of the detailed news write from Indian Autos Blog too.

http://http://indianautosblog.com/20...ne-partnership

That's one hell of a legendary success to Hyundai, an automaker who started from scratch and is now a big giant in the whole industry