BMW Joins PSA Peugeot-Citroen in a Hybrid Technology Joint Venture

German Luxury automaker, BMW AG has been cooperating with French automaker PSA Peugeot-Citroen in the manufacture of gasoline engines for nine years. Now, the two companies have indicated that together they will invest EUR 100 million ($138, 339,929.65) toward developing and manufacturing components for hybrid electric vehicles. More specifically, the joint venture (called BMW Peugeot-Citroen Electrification) is working toward creating and producing their own battery packs, E-machines, generators, power electronics,  and chargers - and even to write their own software for hybrid systems.

Subject to approval by the authorities, the joint venture between BMW and PSA Peugeot-Citroen is slated to launch in the second quarter of 2011. BMW Peugeot-Citroen Electrification will operate both out of BMW's facility in Munich, Germany and Mulhouse in eastern France. Approximately 400 staff are expected to work for the joint venture by the end of the year.

"[The cooperation] will enable us to act more strategically and with a single, shared approach,"¹ said Norbert Reithofer, CEO, BMW. His PSA Peugeot-Citroen counterpart, Philippe Varin agreeably stated, "This joint venture…enables us to develop advanced technological manufacturing expertise in Europe in the field of electric powertrains, and to retain all its potential for creating value."²

So, what does all this mean for consumers? The hybrid components developed by the BMW Peugeot-Citroen Electrification will equip both BMW's and PSA Peugeot-Citroen's cars, starting in just three years.

Stay tuned for more development on the alliance between BMW and PSA Peugeot-Citroen as they become available. Autohaus BMW - 3015 S Hanley Rd. Saint Louis, MO 63143 - is dedicated to keeping you informed.

[SOURCE] ^1,2http://online.wsj.com/article/BT-CO-20110228-708364.html