BMW, PSA Peugeot Citroen will invest $138.2 million for hybrid joint venture

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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.

“BMW Group and PSA share the same vision of the importance of hybridization in the future. The joint venture will enable us to act more strategically and with a single, shared approach. For us, joining forces also means significant economies of scale, shared development costs, using standardized components and a faster development process,” said Norbert Reithofer, Chairman of the Board of Management of BMW AG. [via - 4wheelsnews]

Post Title → BMW, PSA Peugeot Citroen will invest $138.2 million for hybrid joint venture

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