BMW Vows to Continue EV Venture It Set Up with PSA

BMW AG tells Bloomberg News it will continue an electric powertrain project launched last October even as it moves to dissolve the two-year-old alliance with PSA Peugeot Citroen that created it.

France's La Tribune reports that BMW plans to acquire PSA's 50% of the electrification partnership, as the German carmaker previously said it might do.

The two carmakers agreed in autumn 2010 to form the BMW Peugeot Citroen Electrification venture to design, produce and market electric powertrain components. The partners opened a €100 million R&D center in Munich a year later to develop batteries, generators, chargers, software and electronics for hybrid and electric vehicles.

The venture also includes a plant in Mulhouse, France, that is scheduled to begin production of hybrid components in 2014. BMW says it might hire the employees at the two facilities.

BMW and PSA disclosed last month that they were in talks about ending the electrification partnership because of the French carmaker's tie-up with General Motors Co. in February. Late last month BMW also abandoned discussions with GM about joint fuel-cell research.

BMW signed a memorandum of understanding in June to partner with Toyota Motor Corp. on electric powertrains, fuel cells and lightweight materials.