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BMW, PSA Peugeot Citroen launch JV for electric components

February 03, 2011 // Christoph Hammerschmidt

BMW, PSA Peugeot Citroen launch JV for electric components

Car makers BMW and PSA Peugeot CitroŽn announced to establish joint venture named BMW Peugeot CitroŽn Electrification. The new company is dedicated to the development of components for hybrid electric vehicles including power electronics and software.

The product spectrum of the new company will include battery packs, E-machines, generators, power electronics and chargers as well as software for hybrid systems.

In the first place, the initiative of BMW Group and PSA aims to develop standard hybrid components for the electrification of their vehicle ranges. Its goal is also to create an open European platform on those technologies that will help the European industry to structure itself in the field of hybridization. To that extent, the joint venture will both integrate suppliers by outsourcing development work and could sell hybrid components to other companies beside its two shareholders. Joint research and development, production and component purchasing will leverage significant economies of scale for both companies.

The agreement was signed on February 1st by Norbert Reithofer, Chairman of the Board of Management of BMW AG, and Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën. The JV is scheduled to launch its operations in the second quarter of 2011. The new hybrid components will equip both partners' vehicles from 2014 onwards.

With the move, the two companies extend and expand their existing collaboration. BMW and PSA Peugeot Citroën have been successfully cooperating on engines for several years, building together more than 1.8 million units from 2006 to 2010. In February 2010, the companies agreed to develop the next generation of their jointly designed 4-cylinder petrol engine, which will also meet EU 6 requirements. The joint engine is currently built into a number of MINI, Peugeot and Citroën brand models.

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