BMW and PSA Peugeot Citroen extend their collaboration in the field of hybrid cars

BMW and PSA Peugeot Citroen plans to extend the successful cooperation of hybrid components including front-wheel drive vehicles, it said in a statement the two companies.

Norbert Reithofer, director of the board of management at BMW AG, and Philippe Varin, director of PSA Peugeot Citroen have signed a Memorandum of Understanding. Joint development, production and sale of components will have a significant savings in both companies. It will also lead to standardization of key elements for the electrification of vehicles.

"This cooperation will make a major contribution to reducing the cost of electrification," said Norbert Reithofer. "It also represents an important step towards sustainable mobility."

"We are pleased to expand our long relationship based on close cooperation that exists between our companies," added Philippe Varin. "Combining the expertise of both partners in hybrid technology will certainly have a competitive advantage."

Both sides were an agreement not to disclose financial details of this arrangement.

BMW Group and PSA Peugeot Citroen have a long cooperation in engines. In February 2010, the two companies were an agreement to work together to develop next generation four-cylinder gasoline engine that will perform EU6 rules. Current engine developed jointly by the two companies is used in several models under the brand MINI, Peugeot and Citroen.

Source: http://www.bmw.com/