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.

BMW may be set to out maneuver Lexus for the sales crown in the United States. The August sales report reveals that Lexus has so far sold 131,469 vehicles which is a far cry from their usual 300,000 cars they are selling per year before the recession struck.

The luxury car segment has seen its market cutting down its spending as the economy went into recession. BMW makes good use of the opportunity and tries to catch up and grab the title held by Lexus for almost a decade now. BMW was slightly ahead of Lexus looking at the June sales figures but the latter was able to rebound by July.

BMW is hoping though that their rule as sales leader will not be short lived. There are now signs that the economy is recovering as well as the car market so there is a good chance that the demand for luxury vehicles will also spring back to life.

As the market goes back to normal gradually, it is most likely that Lexus will receive the flow of sales and not BMW. Long-term sales might spell different though if BMW was able to make a good impression to the consumers during the down times.

BMW can also expect a spark in sales by next year when they launch new models like the 7-Series, 5-Series GT, and the X6 Active Hybrid.

For more on BMW and Lexus – check out respectively BMW Blog and Lexus Car Talk.