Munich, Germany – BMW has entered into a new phase of its collaboration with Peugeot Citroën to focus on developing and producing hybrid components. The 50/50 joint venture, BMW Peugeot Citroën Electrification, is an expansion of a memorandum of understanding signed in October 2010 to expand the companies’ existing cooperation to hybrid systems.
The partnership will focus on components such as battery packs, E-machines, generators, power electronics and chargers, along with software for hybrid systems. The joint program will leverage significant economies of scale for both companies.
The initiative aims to develop standard hybrid components for the electrification of their vehicle ranges. The goal is to create an open European platform on those technologies that will help the European industry structure itself in the field of hybridization. To that extent, the joint venture will integrate suppliers by outsourcing development work, and could sell hybrid components to other companies beside its two shareholders.
The joint venture is expected to launch its operations in the second quarter of 2011, with the new components equipping both partners’ vehicles from 2014 onwards.