The joint venture of BMW and PSA Peugeot Citroen is set to extend operations to include a new small car platform, which will likely be used to create a front-wheel-drive 1-Series and the next generation of Minis.
BMW and PSA are already engaged in the joint design and production of four-pot engines for Mini and PSA models but the two companies are now preparing a deal to build a new modular front-wheel drive platform.
The structure that they have planned supports the next-generation Mini range, including successors to the Citroen C3 and C4, Peugeot 308 and the upcoming Peugeot 208.
A BMW source reveals that the duo had wanted to extend their joint venture operations. He says that ultimately, a decision was made for BMW to build on the relationship with Peugeot.
The details of the decision are set to be made public early next year. The largest hurdle is related to the platform's use in the 1-series. It's speculated that future incarnations of the 1-Series would be on the same basic structure as the 2013 Mini.
A BMW source had disclosed that discussions continue on whether BMW should break with the tradition of rear and four-wheel-drive cars.
The source said that this is one subject that the company is not eager to take up but then the company has to be realistic with the targets it has set for fuel consumption and emissions, and as such, these targets prefer a front-wheel-drive solution for 2018.