Mitsubishi shares jump on reports of it supplying PSA Peugeot Citroen with electric-cars

Shares of Mitsubishi Motors Corp jumped 5 percent today after Japanese business daily Nikkei reported that the company will start supplying France’s PSA Peugeot Citroen Group with a version of its i MiEV electric-car. It has been previously reported that the Japanese and French automaker will team up to develop electric powertrains for use in small vehicles.

Nikkei reported that Mitsubishi will supply 10,000 units of the i MiEV passenger car to PSA Peugeot Citroen Group by 2011 on an original equipment manufacturer basis, the Nikkei added.

“We are considering collaborating with PSA on electric cars as we said officially last June,” said company spokesman Fumio Nishizaki.

The i MiEV is a 100% electric vehicle that uses high-performance lithium-ion batteries to power its compact, lightweight motor. It does about 100 miles on a single charge. Mitsubishi hopes to build 2,000 units of the i MiEV in fiscal year 2009 and hopes to ramp that up to 10,000 units in fiscal year 2011. Pricing is expected to come in at less than 3 million yen ($32,410 USD).

Source: Reuters