BMW and PSA Peugeot Citroen revealed that they will be investing EUR100 million ($138.2 million) to jointly develop hybrids. The joint venture, dubbed BMW Peugeot Citroen Electrification, will start operations in the second quarter of 2011. This investment is not expected to produce effects before 2014, the year when the vehicles of the two companies involved will start using the same components.
These parts include battery packs, E-machines, generators, power electronics, chargers and the software for the hybrid systems.
The joint venture has a facility in the greater Munich area where research and development will be done. Meanwhile, the actual production will take place in Mulhouse, France. For these two locations, about 650 jobs will be created. About 400 of these will be based in Germany. At the point wherein production will go full blast in France, the site will have about 250 employees.
While research and development will be conducted in the greater Munich area, the actual production will be done in Mulhouse, France. The company revealed that 400 employees, who are expected to start working with the company towards the end of the year, will be primarily based at its Munich facility. Jobs will be added at the Mulhouse plant once production begins by 2014. Once production is well under way, this facility is slated to have an estimated 250 employees.
The management of this joint venture, including the workforce, will come from the personnel of the two parent companies. In addition, there is also a plan to have external candidates fill the 100 new positions once operations start later this year. Currently the joint venture is looking for engineers with specializations in electronics and electric mobility. BMW Group and the PSA Peugeot Citroën have worked together for almost a decade. In 2002 for instance, the two companies decided to design and produce together the 4-cylinder engines.
For the period starting from 2006 and up to 2010, it is estimated that more than 1.8 million motors have been made for different branded models like, Citroën, MINI, and the Peugeot, to name a few. By February 2010, the partners also agreed to develop the next generation 4-cylinder gasoline engine that was jointly designed, an engine that the two partners hope will qualify with EU 6 requirements.
In October of the same year, both PSA Peugeot Citroën and BMW Group entered into a Memorandum of Understanding with the goal of expanding their current partnership to include hybrid systems. It was later announced in February 2, 2011, that the two partners would call this joint venture as “BMW Peugeot Citroën Electrification”. The plan of these two companies is to develop and manufacture standard hybrid component in order to have their particular vehicle ranges electrified.
The joint venture will look into software used on hybrid systems, generators, E-machines, chargers, power electronics, and battery packs. With this, the two companies hope that these technologies will have an open platform. They aim to support the European auto industry, particularly the field of hybridization. As such, the joint venture will become a full-fledged company and will integrate suppliers through outsourcing development work. It also plans to sell hybrid components to third parties.