Munich, Germany – The BMW Group and PSA Peugeot Citroën intend to expand their successful cooperation by including hybrid components for front-wheel drive vehicles.
The companies said that joint development and production of components, as well as joint purchasing, will allow significant economies of scale for both partners, as well as standardization of key elements for the electrification of vehicles. The companies did not disclose financial details of the agreement.
BMW and PSA have been successfully cooperating on engines for several years. In February 2010, the two agreed to develop the next generation of their jointly-designed four-cylinder gasoline engine. The joint engine is current used in a number of Mini, Peugeot and Citroën models.