The BMW Group and PSA Peugeot Citroen have signed a memorandum of understanding to develop hybrid components for use in front-wheel-drive vehicles with electrified drive trains, allowing both the companies to standardise key elements for the electrification of vehicles.
The agreement, which will combine both the company’s knowledge in hybrid technologies, will facilitate joint development and production of components and also joint purchasing, leveraging economies of scale for both partners.
The signing of the MOU builds upon a long-standing cooperation between the two companies to jointly develop vehicle engines, including a 4-cylinder petrol engine for MINI, Peugeot and Citroen brand models as per the EU 6 requirements.
BMW chairman of the board of management Norbert Reithofer said that this cooperation will deliver a major contribution towards a competitive cost structure in the field of electrification and also represents another important step on the road to sustainable mobility.