World War II jokes aside, the French and the Germans are joining forces this time…and for powers of good. BMW and PSA Peugeot Citroën plan to invest 100 million Euros and the efforts of 400 employees into developing hybrid technology, to be shared by both brands.

The program, excitingly titled “BMW Peugeot Citroën Electrification,” will be based in both Munich, Germany, and Mulhouse, France. The program will add over 100 new engineering jobs to the two cities and will focus on hybrid components such as battery packs, E-machines, generators, power electronics, chargers, and software.

“As responsible carmakers, we aim to create an open European platform and foster the development of European standards for hybrid technologies,” said Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën. “This joint venture will also enable us to develop advanced technological manufacturing expertise in Europe in the field of electric powertrains, and to retain all its potential for creating value.”

This is not the first time BMW and PSA Peugeot Citroën have worked together; in 2002, the two companies developed and built four-cylinder engines for MINI, Peugeot and Citroën cars. And in 2010, they worked on a replacement four-cylinder engine that will meet new EU 6 emissions requirements.

The program is scheduled to start at the end of 2011, and we can expect to see hybrid-equipped BMWs, Peugeots and Citroëns in 2014.

BMW and French automaker PSA Peugeot Citroen have officially announced plans to partner on development of hybrid components for front-drive vehicles. Currently the two automakers already share engines, between the Peugeot, Citroen and MINI brands. It’s expected that the new hybrid drivetrains will be shared with models from those ranges (including the next-generation MINI Cooper) as well as with BMW’s upcoming lineup of front-drive 1 Series models.

“This cooperation will deliver a major contribution towards a competitive cost structure in the field of electrification. It also represents another important step on the road to sustainable mobility,” said Norbert Reithofer, Chairman of the Board of Management of BMW AG.

Official release after the jump:

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PSA Peugeot Citroen is the first automaker to publicly stand up to the Chinese government’s proposed Green Car Plan. Recently an initial draft of a new piece of Chinese government legislation was leaked in which was revealed plans by the world’s largest auto market to strong arm international auotmakers into sharing their hybrid and electric vehicle technology with Chinese partners.

Currently in China if an automaker wants to set up shop it has to partner with a local company in order to do so. Under China’s new Green Car Plan, designed to make China a world leader in hybrid and EV technology, partnerships would now require the local business to take a controlling share of the joint venture if the international company wanted to build or sell “green” cars in China. In other words, the Chinese government is using the lure of its massive (and expanding) auto market to pry industry secrets away from companies – something that isn’t sitting well at all with companies like PSA Peugeot Citroen, after pouring billions of dollars into their own development projects.

In a recent interview with Automotive News China, PSA CFO Frederic Saint Geours commented rather unequivocally that, “The Chinese government will have to reconsider its position.”

With PSA making this dramatic statement, other automakers are likely to step forward and challenge the Chinese governments policy.

[Source: Automotive News China via Autoblog]

A little over a month after the new Outlander Sport SUV (known as the ASX or RVR in the rest of the world) took a bow at the New York Auto Show, Mitsubishi has announced that it will be giving a variation of the sharp-looking crossover to Peugeot and Citroen, two companies which have had a long alliance with the Japanese automaker.

The Peugeot/Citroen variant will come with a very European 1.6-liter diesel engine, and the choice of either front or four-wheel-drive. Expected to launch in 2012, Peugeot and Citroen expect to move a combined 50,000 units per year, with the companies forecasting a 60% growth in SUV sales by 2015. While Europe is not usually thought of as hot spot for SUVs, compact crossovers (like this small, diesel powered model) are a hit and the ASX could potentially be a popular vehicle for locales with tight, winding streets and high fuel prices.

Official release after the jump:

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BMW and French automaker Peugeot Citroen have signed a new agreement to work together to develop a new generation of improved 4-cylinder engines. The new powerplants will be used in BMW’s MINI lineup as well as in Peugeot’s 207 and Citroen’s C3 Picaso.

BMW recently made several changes to the 2010 versions of the engines in Europe, delivering improved power and fuel economy. MINI also did away with the smaller 1.4-liter four-cylinder in its MINI One and MINI First models in favor of a larger but more efficient 1.6-liter engine.

The new engine lineup is being created to meet Europe’s upcoming 2014 “EU 6″ emissions regulations, and should deliver impressive fuel economy. Currently, the MINI Cooper achieves an impressive 28-mpg city, 37-mpg highway fuel economy rating in the U.S.

BMW and Peugeot Citroen also said the two automakers would look to work together in other areas, including production and development of select components.

BMW rival Mercedes-Benz is currently also engaged in talks with a French automaker, Renault, over a potential partnership on platforms and engines for a new line of small cars, including the next A-Class and B-Class.

[Source: Canadian Business]

Europe’s second largest automaker, French company PSA Peugeot Citroen, is considering purchasing Japanese automaker Mitsubishi Motors. News of the possible purchase comes from Nikkei English News, and had Mitsubishi’s shares up 13.4 percent in overseas trading.

A similar report in Bloomberg BusinessWeek reports that Peugeot would take a 53 percent stake in Mitsubishi Motors worth about $3.8 billion, with Mitsu taking a reverse 18 percent stake in the French automaker. This business sharing platform wold be similar to the one that Nissan and Renault engaged in roughly a decade ago when the French automaker bought the then-struggling Nissan.

The combined sales tallies of both companies in 2008 totaled 4.45 million vehicles, which would make any new company the sixth largest automaker in the world.

Some are skeptical of just what Peugeot sees in Mitsubishi, but there are many reasons to suggest why Peugeot is interested. For starters, Mitsubishi certainly has greater expertise in SUVs and crossovers – like the new Outlander GT (pictured above). Next up, this year Mitsubishi became the first automaker in the world to begin sales of an electric car, the iMiEV, and Peugeot is certainly keen on EV technology. Also, the added production output of more electric cars would make for bigger discounts.

Skeptics argue that the biggest problem with the merger is that while Mitsubishi does have a foothold in certain market’s that are foreign to the French automaker, Mitsu’s impact in those markets (like in Noth America) is insignificant. However, a brand like Mitsubishi does have a strong cult-like following, especially amongst performance car nuts, and would be much easier to build on than introducing a French brand.

The more realistic roadblock, however, is likely to be Peugeot’s limited resources having suffered significantly during the recent economic downturn.

The BusinessWeek report does suggest that the talks are ongoing and that a decision could be announced by as early as January.

[Source: BusinessWeek]