BMW's headquarters in Munich, Germany. Image: BMW
New engines are needed to meet ever-tightening global fuel economy and emission standards, and engines are incredibly expensive to develop, test and put into production. The cost to develop a new engine family can range between $1.3 and $2.6 billion dollars, and no automaker wants to pay that tab alone if they can split the cost with another partner.
BMW already has cooperative relationships in place with PSA/Peugeot/Citroen, Toyota and Daimler, and is allegedly in discussion with General Motors as well. Now comes word from Automotive News, citing German source Automobil Produktion, that BMW may also be in talks with Hyundai over future engine development.
Speculation surfaced after Hyundai Chairman Chung Mong-koo’s son, Chung Eui-sun, allegedly met with top BMW managers in Munich, although the purpose of the meeting (if it actually took place) wasn’t clear. While both BMW and Hyundai could benefit from sharing powertrain development costs, Hyundai could have been in Munich to pitch other business opportunities (like the use of its high strength steel) as well.
In typical German fashion, BMW denied comment on the report, saying only that “further co-operation partners are currently not foreseen.”
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
