Yesterday, Norbert Reithofer, Chairman of the Board of Management of BMW AG, and Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën signed an agreement to set-up a 50-50 equity joint venture.
Named BMW Peugeot Citroën Electrification, it will focus on developing hybrid technologies (including battery packs and components) and allow significant economies of scale for both companies.
First step: develop standard hybrid components for their ranges and create an open European platform to help the industry.
The new hybrid components will equip both partners’ vehicles from 2014 onwards.
“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. “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.