The joint venture will focus on developing and producing hybrid
components, a fast-growing sector
Cooperation will leverage significant economies of scale
Munich/Paris. The BMW Group and PSA Peugeot
Citroën have decided to enter into a new phase of their
collaboration, by signing an agreement to set up a 50-50 equity
joint venture named BMW Peugeot Citroën Electrification. The
agreement was signed on February 1st by Norbert Reithofer, Chairman
of the Board of Management of BMW AG, and Philippe Varin, Chairman
of the Managing Board of PSA Peugeot Citroën. In October 2010,
the two companies had signed a Memorandum of Understanding designed
to expand their existing cooperation to hybrid systems.
BMW Peugeot Citroën Electrification will focus on developing
and producing hybrid components, including battery packs,
E-machines, generators, power electronics and chargers, while also
developing software for hybrid systems. Joint research and
development, production and component purchasing will leverage
significant economies of scale for both companies.
First and foremost, this initiative of BMW Group and PSA Peugeot
Citroën aims to develop standard hybrid components for the
electrification of their vehicle ranges. Its goal is also to create
an open European platform on those technologies that will help the
European industry to structure itself in the field of hybridization.
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.
Subject to approval by the relevant competition authorities, the
joint venture is expected to launch its operations in the second
quarter of 2011. The new hybrid components will equip both
partners’ vehicles from 2014 onwards.
The joint venture’s management, as well as the rest of its
workforce, 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 Group’s Purchasing
Strategy, will be appointed Chief Executive Officer of BMW Peugeot
Citroën Electrification, and Jean Leflour, currently Director
Customer Satisfaction and Quality Planning at PSA Peugeot
Citroën, will be appointed Managing Director.
“This cooperative venture will enable us to achieve
significant economies of scale in the field of electrification. It
also represents an important step on the road to sustainable
mobility,” said Norbert Reithofer. “With this joint
venture, we are sure to develop and expand our expertise and to
build a European leader in the field of automotive hybrid
innovation,” noted Philippe Varin.
The BMW Group and PSA Peugeot Citroën have been successfully
cooperating on engines for several years, building together more
than 1.8 million units from 2006 to 2010. In February 2010, the two
companies agreed to develop the next generation of their jointly
designed 4-cylinder petrol engine, which will also meet EU 6
requirements. The joint engine is currently built into a number of
MINI, Peugeot and Citroën brand models.
The BMW Group is one of the most successful manufacturers of
automobiles and motorcycles in the world with its BMW, MINI and
Rolls-Royce brands. As a global company, the BMW Group operates 24
production facilities in 13 countries and has a global sales network
in more than 140 countries.
The BMW Group’s global sales volume for the 2010 financial
year amounted to approximately 1.46 million automobiles and over
The BMW Group achieved a global sales volume of approximately 1.29
million automobiles and over 87,000 motorcycles for the 2009
financial year. Revenues totalled euro 50.68 billion. At 31 December
2009, the company employed a global workforce of approximately
The success of the BMW Group has always been built on long-term
thinking and responsible action. The company has therefore
established ecological and social sustainability throughout the
value chain, comprehensive product responsibility and a clear
commitment to conserving resources as an integral part of its
strategy. As a result of its efforts, the BMW Group has been ranked
industry leader in the Dow Jones Sustainability Indexes for the last