The next generation Mini, due on the market in 2007, will have a PSA diesel engine, reported Automobilwoche, quoting BMW management.
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This means BMW will stop sourcing diesels for the Mini from current supplier Toyota.
The PSA engine reportedly has a larger engine capacity and better performance, and can also be fitted into the car more simply and more cheaply because of the work the PSA/BMW joint venture has done in supplying petrol engines.
PSA can also offer better prices because it has larger economies of scale.
