The CEOs of BMW and PSA Peugeot Citroen have said that they are hoping to expand their powertrain cooperation.

BMW CEO Norbert Reithofer told the Financial Times Deutschland that jointly made engines will also be used for the next BMW 1 Series. And PSA’s Philippe Varin said the two are looking for ways to expand their partnership beyond the current engine production.

The report said the potential broader cooperation will involve smaller engines which will be installed in small BMWs.

The report added that relations between the two companies have warmed recently.