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NINETY EIGHT REGENCY

PSA seeks closer carbon fiber ties with BMW, report says

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PSA seeks closer carbon fiber ties with BMW, report says

September 27, 2010 06:01 CET

FRANKFURT (Reuters) -- PSA/Peugeot-Citroen is considering expanding its cooperation with BMW AG in carbon fiber, a German business newspaper reported.

"We are looking for technical solutions which can be put to use both at premium producers and at generalists," Handelsblatt quoted PSA CEO Philippe Varin.

Carbon fiber is a composite material which offers the same strength as steel at lighter weight, which is useful in car body structures, but it is still relatively expensive.

Varin did not give further details and BMW would not comment, the newspaper said.

Handelsblatt went on to cite car industry sources saying that BMW and PSA might be talking about the possibility of PSA taking supplies of carbon fiber in future from a BMW/SGL Carbon joint venture firm set up in 2009.

The joint venture is setting up a plant in the U.S. to make lightweight parts for electric cars.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100927/ANE/309269991/1143#ixzz10k5Vre1j

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