PSA Peugeot Citroen will begin producing a new series of small engines developed with BMW AG. The engines will be made at Peugeot’s new Douvrin, France, plant at the end of 2005, say reports. Peugeot will split the costs with BMW according to the number of engines produced for each auto maker. Last July Peugeot and BMW said the cost of the engine project would be E750 million ($809 million).

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