BMW on Monday rejected a suggestion by the investment bank Goldman Sachs that it was looking to PSA Peugeot Citroen to help expand its new Mini car brand, Agence France Presse (AFP) said.
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“We believe BMW is losing money on Mini and currently lacks the low-cost expertise to expand its small-car range profitability,” Goldman Sachs wrote in a note to clients, according to AFP.
“Supplier sources tell us BMW is looking to Peugeot for a solution, in the form of common platforms, purchasing and car manufacturing,” the note said, AFP reported.
“We currently cooperate with PSA in the area of development and manufacture of small-sized engines. We’re not planning any alliance beyond that,” a BMW spokesman told AFP.
According to AFP, BMW also rejected Goldman Sachs’ suggestion that BMW was “losing money on every Mini it builds, due to a hugely complex product, low scale, manufacturing problems and a sterling cost base.”
“The Mini is profitable,” the spokesman insisted to AFP, without revealing any details.
