Just the Facts:
- Two of Europe's largest automakers will join forces to develop new components and platforms for future hybrid electric vehicles.
- BMW and Peugeot-Citroen will begin installing the new hybrid systems in their vehicles in 2014.
- The partners may sell hybrid components and systems to other manufacturers.
Separately, Renault said it will begin ramping up production of electric motors, batteries and vehicles, beginning in 2012, as part of its effort to make France "the center for electric vehicle production."
The new BMW Peugeot Citroen Electrification joint venture will open for business in the second quarter, according to the partners, which already collaborate on the development and production of small gasoline engines.
The 50-50 joint venture, signed by BMW Chairman Norbert Reithofer and PSA Peugeot Citroen Chairman Philippe Varin, will focus on development of such critical hybrid components as battery packs, electric motors, power electronics and chargers, and software. The partners will conduct joint R&D, production and component purchases in order to reduce costs.
BMW and PSA said they aim to "develop standard hybrid components for the electrification" of their future vehicles, the first of which are expected to appear in 2014. The partners said they also intend to "create an open European platform on those technologies" and sell components to other companies.
Reithofer said, "This cooperative venture will enable us to achieve significant economies of scale in the field of electrification." Varin added, "With this joint venture, we are sure to...build a European leader in the field of automotive hybrid innovation."
Renault's global partner Nissan recently began selling the battery-powered Leaf and has announced plans to build EVs in plants in Japan, the U.S. and the U.K., with annual production capacity of 500,000 units by 2015.
The two companies have said they plan to invest a combined $5.5 billion worldwide in electric vehicles and components.
Renault said it would assemble its Zoe electric car in Flins and the Kangoo electric microvan in Maubeuge. Electric motors will go into production in Cleon in 2013, while batteries will be built at a new plant in Flins in 2012
