PSA Peugeot Citroën#BMW Peugeot Citro.C3.ABn Electrification

The BMW Peugeot Citroën Electrification, BPC Electrification or BPCE with official acronym, was a Franco-German joint venture between the Bavarian BMW Group with the French PSA Peugeot Citroën. The Memorandum of Understanding establishing the joint venture was closed in October 2010. The final agreement is finally Norbert Reithofer of BMW, as well as by Philippe Varin, part of the PSA Group, was signed on 1 February 2011. Both groups participated in the company to 50 percent. The official company was founded on April 5, 2011. The application was filed under the Dutch law, the form of the Besloten Vennootschap, a sort of closed corporation.

BMW Group and PSA Peugeot Citroën planned more than 100 million euros in the joint competence center for hybrid and electric drive technology investments. In October 2011, the research and development location in Munich began its work, the start of production in Alsace Mulhouse was planned for 2015. Together BMW and PSA Peugeot Citroën wanted to create the first European open technology platform in the field of electrification of drive systems.

Because of the closed in February 2012 partnership with General Motors, Peugeot, however, sought after not even a year, to opt out BPC Electrification at, after which BPCE 1 January 2013 was dissolved.

History

The collaboration between the BMW Group and PSA Peugeot Citroën was based on an already existing for almost ten years of partnership in the field of drive technology. As part of a closed in 2002 partnership more than 1.8 million four-cylinder gasoline engines for models of the brands Mini, Peugeot and Citroën have already been produced. In February 2010, the two companies agreed to continue this collaboration with the aim to develop the new generation of four-cylinder gasoline engines together. The joint venture should accelerate in the field of hybrid components, the standardization of components, which should lead to significant economies of scale in purchasing and production.

The launch of the joint venture created a prerequisite for the implementation of jointly agreed objectives, where from 2015 should be started with the production of hybrid components for the electrification of both companies' models.

Construction

The research and development center in Munich in October 2011 took on his work. At the beginning of 2012, about 400 people were there already busy. In addition, BPC Electrification planned in 2012 around 200 new highly qualified staff in addition to research and development set. The production of components for the electrification of both companies' models should start in French city of Mulhouse in 2015. At Mulhouse site were for a forecast initial volume of about 10,000 vehicles per annum created in a first step in the production of up to 250 new jobs.

Should BPC Electrification was a strategically -scale, long- term project, the economies of scale in production and purchasing as well as significant synergies and cost savings in research and development to achieve. BPC Electrification wanted to use these effects to increase its development and innovation and to minimize the time to market for its products. BPC Electrification acted along the entire value chain, starting with the pre-development through to production and reserved the right to make its marketable components available to third parties. BPC Electrification drew on expertise and competence of the already established and proven suppliers and production networks of the BMW Group and PSA Peugeot Citroën Group.

Credentials

Swell

• Press release of February 2, 2011
• Press release of 25 October 2011
• BMW and Peugeot jointly build hybrid engines
• BMW Peugeot Citroën Electrification to invest 137 million in new hybrid joint-venture