BMW and Peugeot combine to make electric vehicle components

BMW and Peugeot have decided to link up to create electric vehicle components. Significant progress is being made one year of signing a contract of agreeing the move.

Negotiation for appropriate conditions regarding conditions for both manufacturers is currently in progress. BMW and Peugeot hope the deal will be secured quickly with production of components for electric and hybrid vehicles aiming to start soon. The components are to planning to be utilised throughout models for BMW and Peugeot from 2015. (Some sources have stated the target to be 2014)

The chairman of the deal between the two companies, Wolfgang Guilich stated the high ambitions of the project. He said “The BMW Group and PSA Peugeot Citroën are following a joint path with clear and ambitious goals. We want our company to be one of the leading suppliers in the field of electric powertrains over the next few years.”

Over €100 million is being invested into the business venture. In Munich, 400 employees will be working at a Research and Development facility. The staff will mainly consist of engineers working with electo-mobility and electronics. The products designed here will be manufactured in Mulhouse, France where around 250 employees will be working.

The PSA (Group holding Peugeot and Citroen) chairman indicated that the technology to be created is a way of the industry moving forward. He said “This joint venture will also enable us to develop advanced technological manufacturing expertise in Europe in the field of electric powertrains.”

The BMW CEO Norbert Reithofer stated that a joint combination of both companies will prove to be more effective. He said “For us, joining forces also means significant economies of scale, shared development costs, using standardized components and a faster development process.”

The specific components to be developed by BMW and Peugeot include electric motors, generators, power electronics, loading units, high voltage batteries and energy management software. It has been stated that the components and technology involved will not be just for the benefit of BMW models and Peugeot cars, but could also be sold onto third parties. An open technology platform will allow this to happen along with integrating suppliers into the whole process as it happens.

BMW and Peugeot have clearly secured a great deal with plenty of potential. Let’s hope they don’t end up like Volkswagen and Suzuki.