PSA-GM Alliance may stop PSA-BMW joint venture image

The joint venture between BMW and PSA Peugeot Citroen on making hybrid components may stop because of PSA’s new alliance with General Motors.

Since agreeing the GM alliance, PSA has been adamant that numerous other technical cooperations would not be affected.

But Opel’s latest move drew an icy response from Munich-based BMW, which said it wanted to ensure the joint venture company could continue making hybrid components, but stopped short of confirming Peugeot would remain on board in the long run.

BMW also said the conditions of the joint venture had changed since General Motors became PSA’s second-largest shareholder with a 7 percent stake, but said it was still sticking with the venture.
A PSA spokesman told Reuters: “We are examining the impact of our alliance with GM on the joint venture…It’s clear the alliance changes the conditions of our partnership.”

BMW, the world’s biggest maker of luxury vehicles, may buy out the 50 percent stake that Peugeot currently holds in the BMW Peugeot Citroen Electrification partnership as a consequence of the alliance signed by the French carmaker and Detroit-based GM (GM) in February, news website reported today, citing unidentified industrial sources.

The auto sector has become the setting of multiple alliances because carmakers must share costs for new technology to meet stricter global emission standards.

In March, BMW agreed to work with Japanese giant Toyota on the development of lithium-ion battery cells to power more environmentally friendly cars.