To be honest I was expecting something like that to happen sooner or later. Financial Times Deutschland announced today that BMW is in talks with General Motors and Fiat to sell them engines and transmissions, but none of the three cared to give an official comment.

The main reason why I was expecting it to happen was because for over 10 years GM sold automatic transmissions to BMW or 3 and 5 series models.

They want to return the “favor”. Anyway, about the engines, BMW is rumored to either provide a 4.4l V8 engines for the Cadillac line or twin turbo. Read more »

General Motors’ European arm has decided that it won’t jump feet-first into the micro-car segment with Smart, and more recently Toyota and Volkswagen. Speaking with Automotive News Europe, GM’s Euro-veep Carl-Peter Forster said that, “These specialized urban vehicles have a limited market.”

True enough, but it’s a market that stands to go through a growth spurt in the coming years, and GM’s decision to opt out of providing a competitive product might be a shortsighted move. Read more »