BMW Peugeot Citroen Electrification – that’s the named of BMW and PSA Peugeot Citroen’s new 50/50 equity joint venture that will expand their existing cooperation on hybrid systems.
“BMW Peugeot Citroen Electrification will focus on developing and producing hybrid components, including battery packs, E-machines, generators, power electronics and chargers, while also developing software for hybrid systems,” the two companies said in a statement. “Joint research and development, production and component purchasing will leverage significant economies of scale for both companies.”
First, BMW and Peugeot Citroen will focus on developing standard hybrid systems for their vehicle ranges. Later the joint venture will integrate suppliers by outsourcing development and could sell hybrid components to other companies.
The joint venture is expected to launch work in the second quarter of this year. The hybrid systems will start entering both company’s vehicles sometime after 2014.
“This cooperative 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,” said BMW CEO Norbert Reithofer.
– By: Omar Rana