PARIS (Reuters) - French car maker PSA Peugeot Citroen and Germany’s BMW have extended their engine partnership by creating a joint venture to develop, purchase and produce powertrain components for hybrid vehicles.
The 50-50 joint-venture 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 power vehicles, they said on Wednesday.
“This cooperative venture will enable us to achieve significant economies of scale in the field of electrification. It also represents an important step on the road to sustainable mobility,” BMW’s chief executive Norbert Reithofer.
The venture will produce among other products battery packs, power electronics and software for hybrid systems.
The two companies had already agreed in principle in October to create a joint venture for hybrid components.
Reporting by Astrid Wendlandt; Editing by Greg Mahlich