Car giants strike joint purchasing agreement

3 February 2011
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3 February 2011 | Angeline Albert

The BMW Group and PSA Peugeot Citroën have agreed to buy car components together as part of a new joint venture.    

Yesterday the two carmakers signed a deal to set up a project that will develop hybrid parts for the electrification of their vehicles.

The BMW Peugeot Citroen Electrification venture will enable combined component purchasing, research and development and production.

Wolfgang Güllich, currently responsible for BMW Group’s purchasing strategy, will be appointed CEO of the new enterprise.

The hybrid components being developed include battery packs, generators, power electronics and chargers. The new parts will equip both partners’ vehicles from 2014 onwards.

In a statement the companies said: “This co-operative venture will enable us to achieve significant economies of scale in the field of electrification. The joint venture will both integrate suppliers by outsourcing development work and could sell hybrid components to other companies beside its two shareholders.”

The car manufacturers have been collaborating on engines for several years, building more than 1.8 million units from 2006 to 2010.

Subject to approval by competition authorities, the venture is expected to launch in the second quarter of this year.

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