BMW and PSA's joint venture will develop and produce hybrid technology to be used by 2014
3 February 2011

BMW and PSA Peugeot Citroën have signed an agreement to set up a joint hybrid venture.

The 50:50 initiative called BMW Peugeot Citroën Electrification is set to begin from April this year and will focus on developing and producing hybrid components, including battery packs, E-machines, power electronics and chargers, while also developing software for hybrid systems.

Parts manufactured should make their way into both partners’ hybrid vehicles by 2014, the companies have said in a joint statement.

Heading the venture will be Wolfgang Güllich, BMW's head of purchasing strategy, and Jean Leflour, chief of customer satisfaction at PSA.

According to BMW CEO Norbert Reithofer, “This co-operative 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.”

Since 2006, both companies have built more than 1.8 million engines together with jointly developed engines currently being used in Mini, Peugeot and Citroën models.

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