Already partners in developing 4-cylinder petrol engines, BMW and PSA Peugeot Citroën have decided to set up 50-50 equity joint venture named the BMW Peugeot Citroën Electrification, which will primarily focus on developing hybrid components. Sharing the cost of research and development as well as production and component purchasing, the two companies expect to achieve significant economies of scale.
The hybrid components in question include battery packs, E-machines, generators, power electronics and chargers, alongside the necessary software to operate them that will also be jointly developed. The new technologies will be used by the two automakers for their upcoming electric vehicles and could be sold to other companies as well.
The joint venture is expected to be fully operational in the second quarter of 2011 and it’s estimated that the first series production hybrid components will arrive in 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 Norbert Reithofer, Chairman of the Board of Management of BMW AG.
“With this joint venture, we are sure to develop and expand our expertise and to build a European leader in the field of automotive hybrid innovation”, noted Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën.
