BMW and PSA Peugeot Citroen have announced a new collaboration in signing an agreement to set up a 50-50 equity joint venture named BMW Peugeot Citroën Electrification.
The new agreement was signed yesterday by Norbert Reithofer, Chairman of the Board of Management of BMW AG, and Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën and will focus on developing and producing hybrid components. This will include the development of battery packs, E-machines, generators, power electronics and chargers and software for hybrid systems.
It builds on a previous agreement signed in October 2010, when the two companies had signed a Memorandum of Understanding designed to expand their existing co-operation to hybrid systems.
Peugeot and Citroen’s parent company along with BMW will also engage in joint research and development, production and component purchasing to leverage significant economies of scale for both companies. Peugeot is already planning the launch of the 3008 HYbrid (pictured) this year, but its parent firm is keen to launch more.
First and foremost, this initiative of BMW Group and PSA Peugeot Citroën aims to develop standard hybrid components for the electrification of their vehicle ranges. Its goal is also to create an open European platform on those technologies, that will help the European industry to structure itself in the field of hybridisation.
Subject to approval by the relevant competition authorities, the joint venture is expected to launch its operations in the second quarter of 2011. The new hybrid components will equip both partners’ vehicles from 2014 onwards.
“This cooperative venture will enable us to achieve significant economies of scale in the field of electrification. It also represents an important step on the road to sustainable mobility,” said Norbert Reithofer.
The BMW Group and PSA Peugeot Citroën have been successfully cooperating on engines for several years, building together more than 1.8 million units from 2006 to 2010. In February 2010, the two companies agreed to develop the next generation of their jointly designed 4-cylinder petrol engine, which will also meet EU 6 requirements. The joint engine is currently built into a number of MINI, Peugeot and Citroën brand models.
