We heard earlier this month that BMW and PSA Peugeot Citroen’s have created a new 50/50 equity joint venture that will expand their existing cooperation on hybrid systems. The two companies announced today that they plan on investing 100 million Euros ($137 million USD) in their new joint venture named ‘BMW Peugeot Citroen Electrification.’
BMW Peugeot Citroen Electrification will operate out of tow locations including Munich, Germany and Mulhouse, France. The joint venture is expected to employ 400 workers by the end of 2011. Subject to approval by the competition authorities, the new company is expected to launch its operations in the second quarter of 2011.
“As responsible carmakers, we aim to create an open European platform and foster the development of European standards for hybrid technologies. This joint venture will also enable us to develop advanced technological manufacturing expertise in Europe in the field of electric powertrains, and to retain all its potential for creating value,” said Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroen.
If all goes as planned, the hybrid systems will start entering both company’s vehicles sometime after 2014.
– By: Omar Rana