BMW and Peugeot are discussing extending their co-operation beyond the 1.4 and 1.6-litre petrol engines that the companies use in their Mini and 207 models, according to numerous media reports on Wednesday.

BMW CEO Norbert Reithofer said on Tuesday that the two companies were in talks about deeper co-operation but did not elaborate.

Last week, Peugeot CEO Philippe Varin said the company planned to deepen its current partnerships with BMW and other carmakers, and was "open to studying other alliances or cooperation programmes".

According to the Financial Times, the BMW-Peugeot cooperation could extend to sharing the Mini platform. BMW's so-called 'Mini production triangle' has three plants in the UK centred on the main assembly facility in Oxford with support from panel pressing and engine assembly units.

Peugeot last built cars in the UK at Ryton (near Coventry in the West Midlands) in 2007. That plant has since been demolished.