BMW and PSA form hybrid alliance

By Tom Phillips

19th October 2010

BMW and PSA have inked a deal to develop components for front-wheel drive plug-in hybrid vehicles.

Norbert Reithofer, Chairman of the Board of Management of BMW AG, and Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroen, signed on the dotted line, in a move that’s likely to influence a large number of future cars from both firms.

The new agreement is not to create a new car or platform, and is unrelated to the Project i Megacity car due in 2013, but rather to develop components like batteries, chargers and electric motors, and production systems for building plug-in hybrid electric cars.

The move is beneficial for both parties as it increases the speed of development and economies of scale. Given the size of both firms, the move also allows standardisation of components like plug adaptors which other carmakers will likely have to follow.

Both parties have begun working together already, with a plug-in hybrid version of the Peugeot 208 and the next generation of Citroen C3 and MINI likely candidates for the new technology.

“This cooperation will deliver a major contribution towards a competitive cost structure in the field of electrification. It also represents another important step on the road to sustainable mobility,” said Reithofer.

“We are pleased to broaden our long-standing cooperation based on the strong relationship that exists between our two companies,” added Philippe Varin. “Combining both partners’ expertise in hybrid technologies will clearly create competitive advantage.”

BMW Group and PSA Peugeot Citroen have been cooperating on engines for several years. In February 2010, the two companies agreed to develop the next generation of their jointly designed four-cylinder petrol engine, which will also meet EU6 requirements. The engine is currently built into a number of MINI, Peugeot and Citroen brand models.