The 50-50 joint-venture was signed on February 1st by Norbert Reithofer, Chairman of the Board of Management of BMW AG, and Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroen.
BMW Peugeot Citroen Electrification will focus on developing and producing battery packs, E-machines, generators, power electronics and chargers, while also developing software for hybrid systems.
The new joint venture aims to develop standard hybrid components for the electrification of the two manufacturers’ vehicle ranges, the goal being to create an open European platform on those technologies that will help the European industry to structure itself in the field of hybridisation. The joint venture will both integrate suppliers by outsourcing development work and could sell hybrid components to other companies beside its two shareholders.
In February 2010, BMW and PSA said they would develop 4-cylinder gasoline engines that conform to the latest European Union environmental rules. The deal announced today follows a memorandum of understanding signed in October aimed at expanding existing cooperation on hybrid systems.
BMW Peugeot Citroen Electrification is expected to launch operations in the second quarter of 2011, pending regulatory approvals, and will enable both companies to standardize key components needed for hybrid and electric cars.