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BMW and PSA Peugeot Citroen Parting Ways on Hybrid Alliance

BMW has declared that its partnership with PSA Peugeot Citroen has come to an end. The BMW Peugeot Citroen Electrification alliance on fuel efficient vehicles was established in October 2011. The companies signed a memorandum of understanding in February of 2011. According to the latest reports, they are parting ways.

French automaker PSA Peugeot Citroen had recently joined hands with  General Motors, and GM  purchased a seven percent stake in PSA. On the basis of this new alliance, these companies will work together on small and midsize cars and MPVs.

They are aiming to strengthen the positions of PSA and Opel. They have plans to move the Opel Corsa to a Peugeot platform, while the Citroën C5 and Peugeot 508 to the GM platform technology.

PSA‘s new decision has forced BMW to stop its fuel-cell developments talks with General motors. Before, BMW had plans to co-develop the future technologies with General Motors. And BMW now hopes to work more withToyota.

A total of 100 million Euros was invested in the joint venture of BMW and PSA Peugeot Citeron and around 400 employees were put to work at the new Research and Development Center in Munich.

Now with the deal done with, it is unclear that what will happen to the joint venture’s employees. There is no doubt that these automakers will deposit more efforts to build future fuel efficient technologies.

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