PSA and BMW expand hybrid tie-up
The joint venture that puts petrol and diesel power in small Peugeots, Citroens and Minis is heading into electrificationBMW and PSA Peugeot Citroen have signed a deal to expand their collaborative ventures into hybrid components for FWD vehicles.
A memorandum of understanding was signed this week by PSA Peugeot Citroën chairman, Philippe Varin and BMW's chairman of the board, Norbert Reithofer, confirming joint development, production and purchasing of components to leverage significant economies of scale for both companies. The components are to be used in front-wheel-drive vehicles with electrified drive trains.
"We are pleased to broaden our long-standing cooperation based on the strong relationship that exists between our two companies," said Varin. "Combining both partners' expertise in hybrid technologies will clearly create competitive advantage."
The move will also allow both PSA Peugeot Citroën and BMW to standardise key elements of their future hybrid and electric vehicles.
"This cooperation will deliver a major contribution towards a competitive cost structure in the field of electrification" explained Reithofer. "It also represents another important step on the road to sustainable mobility."
Both parties have agreed not to disclose financial details of the agreement.
PSA Peugeot Citroën and the BMW Group have already been successfully cooperating on engines for several years. A deal dating back to 2002 bore its first fruit for the Bavarian with the second-generation Mini in 2007, when the PSA-sourced unit code-named Prince replaced the first generation's Chrysler-Rover sourced Tritec engine. PSA was already using the same unit in Peugeot 307 and 207 models. In 2009, it expanded into Citroen's C3.
In February 2010, the two companies agreed to develop the next generation of their jointly designed four-cylinder petrol engine, which will also meet strict EU 6 emissions requirements. The joint engine is currently built into a number of MINI, Peugeot and Citroën brand models.
-- with staff
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