Mitsubishi Motors and Smart gmbh have signed an agreement where Mitsubishi will supply its next generation normally aspirated and turbocharged small-capacity engines to smart to be used in the successor to the Smart Fortwo model due in 2007.

This same engine will be used in the Mitsubishi i minicar. The Mitsubishi i will be available in January 2006. The engines will be produced at Mitsubishi’s engine plant in Mizushima. According to spec sheets of the concept, it’s powered by a 3-cylinder turbocharged MIVEC engine, so likely that and a normally aspirated version would be supplied to smart.

This deal will help ailing Mitsubishi Motors Corporation realize better economies of scale for the new minicar engine series, lowering costs per unit.