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BMW, PSA extend partnership

2010-10-20 09:27
BMW AG and PSA/Peugeot-Citroen SA will extend their engine partnership to include jointly developing, purchasing and producing hybrid powertrain components for front-wheel-drive vehicles.

BMW said it expects significant cost savings from the deal, which will allow both companies to standardize key components needed to make electric motors used in hybrid vehicles.

"This cooperation will deliver a major contribution toward a competitive cost structure in the field of electrification. It also represents another important step on the road to sustainable mobility," BMW CEO Norbert Reithofer said in a joint statement with PSA CEO Philippe Varin on Monday.

Both parties have agreed not to disclose financial details of the agreement nor did the two specifically say whether the components could extend all the way down to so-called micro-hybrid components such as automatic engine idling sold under the term "start-stop" technology.

Earlier this month, Reithofer said he expected volumes on the front-wheel-drive architecture, which would be used for a BMW brand model for the very first time, could reach volumes of 700,000 units and up to as much as 1 million.

"Combining both partners' expertise in hybrid technologies will clearly create a competitive advantage," PSA said.

In February, the two companies agreed to develop the next generation of their jointly designed four-cylinder gasoline engine, which will also meet EU-6 emission requirements.

The joint engine is currently built into a number of Mini, Peugeot and Citroen brand models.

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