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BMW, PSA to end hybrid deal

2012-07-13 08:38

HYBRID DEAL TO END: Amid PSA's financial crisis, BMW moves to end its hybrid research venture with the French automotive group PSA.

Earlier in 2012 we reported that BMW and Peugeot-Citroen were considering whether to extend their joint venture into hybrid vehicle research.

Now the German automaker intends to end the agreement.

Operations of the BMW Peugeot Citroen Electrification (BPCE) partnership, established in October 2011 to develop, buy and produce electric power trains and components, will be retained by BMW.


BMW will purchase Peugeot's 50% stake in BPCE.

BMW spokeswoman Micaela Sandstede said: "Whether that means the joint venture's employees move to BMW is undecided. We are still in discussions with PSA over the dismantling of the joint venture."

The BPCE comprises a research and development centre in Munich, Germany, and a manufacturing plant in Mulhouse, France, where 250 workers would be employed to build 10 000 vehicles beginning in 2015.

BMW and Peugeot said on June 21 that it was looking at the venture's future after GM bought a stake in the French automaker.

PSA announced a drastic cost-cutting plan to slash 8000 jobs in France and close a factory north of Paris to counter poor sales in crisis-hit Europe. The automotive group, facing a R7.1-billion loss in 2012, is trying to save R10-billion as it struggles to compete in Europe's fiercely competitive vehicle market.

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