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BMW Group and PSA Peugeot Citroën want to Expand Cooperation to Hybrid Systems

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BMW Group and PSA Peugeot Citroën want to Expand Cooperation to Hybrid Systems


The ongoing love affair between the BMW Group and PSA Peugeot Citroën has just become more intense as the two companies announced today their intention to further expand the cooperation to include hybrid components for front-wheel-drive vehicles by singing a memorandum of understanding. Both parties have agreed not to disclose financial details of the agreement.

In a joint statement, the two automakers said the components are to be used in front-wheel-drive vehicles with electrified drive trains with the proposed deal said to offer significant economies of scale for both partners, while also allowing them to standardize key elements for the electrification of vehicles.

"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, Chairman of the Board of Management of BMW AG.

"We are pleased to broaden our long-standing cooperation based on the strong relationship that exists between our two companies," added Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën. "Combining both partners' expertise in hybrid technologies will clearly create competitive advantage."

The two brands already cooperate on the development and production of a 1.6-liter engine that is used in BMW's Mini and in Peugeot and Citroen vehicles while recent reports from Germany note that there have also been talks about a cooperation on carbon fiber materials.

In February 2010, BMW and PSA agreed to develop the next generation of their jointly designed 4-cylinder petrol engine, which will also meet EU 6 requirements.



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BMW To Develop New Front-Wheel Drive Hybrids With PSA Peugeot Citroen

By Viknesh Vijayenthiran


October 18th, 2010

BMW ActiveHybridEnlarge PhotoUntil now, BMW’s hybrid technology has only been applied in its upper range models like the 5- and 7-Series ActiveHybrid sedans and the X6 crossover, the latter of which is billed as the world’s most powerful hybrid vehicle. However, the automaker’s future generation of hybrids will also span the entry-level ranges like the 1-Series and even a new front-wheel drive model currently in the works.

In preparation, BMW has signed a deal with France’s PSA Peugeot Citroen group to expand their already successful powertrain cooperation by now including hybrid component development for front-wheel drive cars. A memorandum of understanding to this effect has been signed by BMW boss Norbert Reithofer and Philippe Varin, the head of PSA Peugeot Citroen.

The components are to be used in front-wheel drive vehicles with electrified drivetrains, and the deal is to include the joint development and joint purchasing to help reduce costs. As an added benefit, the deal will help spur the standardization of key hybrid components across several different brands, including BMW, MINI, Peugeot and Citroen.

The two auto giants have a long history of cooperation in the powertrain field, having just this year announced another deal to develop a new four-cylinder engine family and now this latest hybrid episode.



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