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Archive for March 1st, 2011

BMW and PSA Come Together to Develop Software and Parts for Hybrid Models

In an amicable cost-cutting attempt, two renowned automakers, PSA/Peugeot-Citroen and BMW, come together to design and develop a software and several components for its hybrid models.

According to a joint statement that both car companies released just recently, the amicable 50-50 partnership will take the official name BMW Peugeot Citroen Electrification. The joint operation would start on the second quarter of this year. The BMW Peugeot Citroen Electrification would provide both BMW and PSA/Peugeot-Citroen with car parts as early as 2014.

The head of BMW’s purchasing strategy unit, Wolfgang Guellich, and PSA/Peugeot-Citroen’s head of customer satisfaction unit, Jean Leflour will be spearheading the joint venture of BMW Peugeot Citroen Electrification. According to Norbert Reithofer, the CEO of BMW, the partnership’s joint project would enable them to reach certain economic goals when it comes to electrification. Reithofer adds that the venture is a step towards sustaining mobility.

When it comes to engine development, BMW and PSA has been in cooperation since 2006. Last year, both companies released a statement that they would come together to create a 4-cylinder gas engine that complies with the new environmental regulations of the European Union. The announcement of BMW Peugeot Citroen Electrification is, clearly, a manifestation of the memorandum that both companies signed last October for the development of the said hybrid-power system.

According to both BMW and PSA, several supplies would be in contact with the joint BMW Peugeot Citroen Electrification during the creation process. It’s possible that the partnership would also sell to other manufacturing firms.