After a collaboration initiated in 2002 with the four-cylinder engine jointly designed and produced, that resulted in more than 1.8 million engines on Peugeot, Citroen and Mini models and a new agreement in February 2010 concerning the development of a new 4-cylinder engine conforming Euro 6 standards.
The joint venture "BMW Peugeot Citroen Electrification" will focus on on components like battery packs, E-machines, generators, power electronics, chargers, and software for hybrid systems to equip their vehicles but also sell their technology to other manufacturers.
The German face will be the R&D located near Munich, while production will be in Mulhouse site in France, with a forecast of 400 employees by the end of the year.
The agreement of February 2nd
is now clarified with the formalization of the amount of 100 million Euros that will be invested in "BMW Peugeot Citroen Electrification (subject to approval by the relevant competition authorities).
“As responsible carmakers, we aim to create an open European platform and foster the development of European standards for hybrid technologies. This joint venture will also enable us to develop advanced technological manufacturing expertise in Europe in the field of electric powertrains, and to retain all its potential for creating value,” said Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën.
“BMW Group and PSA share the same vision of the importance of hybridization in the future. The joint venture will enable us to act more strategically and with a single, shared approach. For us, joining forces also means significant economies of scale, shared development costs, using standardized components and a faster development process,” said Norbert Reithofer, Chairman of the Board of Management of BMW AG.