PSA Peugeot Citroen will end its hybrid-vehicle research joint venture with BMW, said the French automaker's head of research and development. Instead, PSA, the second biggest carmaker in Europe, will further develop a similar partnership with GM.
BMW and Peugeot won't produce any hybrid models together or set up assembly plants to build them, as originally expected. The news reportedly came from Guillaume Faury, Peugeot's head of R&D, and confirmed by spokesperson Laure de Servigny, Automotive News reported.
BMW, after finding out Peugeot teamed up with GM in July, began talks into ending the partnership. Peugeot in March said it didn't expect the GM partnership to affect joint work with other carmakers.
The German automaker, which will retain operations of the BMW Peugeot Citroen Electrification partnership, said it still needs to decide how the joint venture will be shaped in the future.
As for the GM tie-up, the American company needs to purchase a seven percent share in Peugeot as part of the deal. The two may also produce hybrid models together. Back in June, meanwhile, BMW made a long-term commitment with Toyota to collaborate on developing fuel cells, lightweight materials, and electric powertrains.