The BMW Group and PSA Peugeot Citroën recently signed an agreement to set up a joint venture to focus on the development and production of hybrid components while also developing software and hybrid systems. The new venture, to be named BMW Peugeot Citroën Electrification, builds on the two companies' current cooperation in engine development – together having built more than 1,8 million engines which is currently being built into a number of Mini, Peugeot and Citroën cars. It is expected that the first jointly-developed hybrid engine will be used in the two companies' products by 2014.
The new venture aims to develop standard hybrid components including battery packs, E-machines, generators, power electronics and chargers. The benefit of joint research and development, production and purchasing holds significant economies of scale in this important – and growing – sector. The initiative also aims to create an open platform that will aid the European industry to become more competitive in the field of hybrid technology. To that extent, the joint venture will both integrate suppliers by outsourcing development work and could sell hybrid components to other companies beside its two shareholders.
The management and workforce of the initiative will be drawn from employees of both companies. Additional external staff will also be hired. The key management positions will be equally shared among the two companies. Wolfgang Güllich, currently responsible for BMW’s purchasing, will be appointed Chief Executive Officer and Jean Leflour, currently Director of customer satisfaction and quality planning at PSA Peugeot Citroën, will be appointed Managing Director of the new venture.
