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.

“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.”

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“The Mini is profitable,” the spokesman insisted to AFP, without revealing any details.