BMW and PSA to Team on Hybrid Components for Front-Wheel-Drive Vehicles

BMW and PSA to Team on Hybrid Components for Front-Wheel-Drive Vehicles

Germany's BMW AG and France's PSA Peugeot Citroen, which have been collaborating on four-cylinder engines, announced today that they intend to expand their cooperation to include hybrid components for front-wheel-drive vehicles.

A memorandum of understanding to this effect has been signed by BMW AG Chairman Norbert Reithofer and PSA Peugeot Citroen Chairman Philippe Varin, the companies said in a joint statement. They specified that the components are to be used in FWD vehicles with electric drivetrains.

The automakers gave no further details about the parts, other than to say that joint development and production of them as well as joint purchasing will leverage significant economies of scale for both partners. It will also allow 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," Reithofer said in the statement.

"We are pleased to broaden our long-standing cooperation based on the strong relationship that exists between our two companies," said Philippe Varin in the statement. "Combining both partners' expertise in hybrid technologies will clearly create competitive advantage."

Both parties agreed not to disclose financial details of the agreement.

The BMW and PSA Peugeot Citroen have been cooperating on four-cylinder engines since 2006. The engine is being used in cars of BMW's compact MINI brand as well as in vehicles bearing the Peugeot and Citroen nameplates. The automakers have produced 1.3 million engines together since they teamed in 2006.

Scott Doggett:  is an AutoObserver.com Associate Editor.