PSA Peugeot-Citroen and Mitsubishi are set to collaborate on building plug-in hybrid cars, according to reports in Japan.
The two firms are currently collaborating on SUVs and electric vehicles. According to the reports, the two firms would co-develop and produce plug-in components. They may also supply each other with hybrid vehicles.
Mitsubishi is currently developing a plug-in hybrid vehicle due for sale in 2013, while PSA is developing diesel hybrids.
Mitsubishi is start supplying PSA with its i-MiEV electric car from 2010 and reports also suggest the two firms plan to manufacture the cars in Russia.
The two firms will want to keep pace with Toyota and General Motors, who both plan to start mass-producing plug-in hybrid vehicles within the next three years.
Mitsubishi Japan declined to comment on the reports, while PSA said it was only currently working with Mitsubishi on electric vehicles and not plug-in hybrids.