BMW, PSA Form JV to Develop EV Powertrains

PARIS – The BMW-PSA Peugeot Citroen hybrid-technology and components joint venture moves forward with a full-blown website and recruitment pages for 90 jobs.

BMW Peugeot Citroen Electrification, or BPCE, will employ 400 technical people in Munich and 250 manufacturing workers in Mulhouse, France. The auto makers’ investment of E100 million ($140 million) creates an independent company that will provide components to the partners by 2015.

BPCE to supply components for partners’ hybrids.

The JV also will search for outside clients, with a goal of increasing volume and reducing prices.

“We want our company to be one of the leading suppliers in the field of electric powertrains over the next years,” says CEO Wolfgang Guellich, formerly head of research and development for powertrain electronics at the German auto maker. “We are leading the change in the global automotive industry.”

His No.2 is Jean Leflour, previously director of customer satisfaction and quality at PSA, whose title is managing director and head of quality and project management.

The JV’s engineers will develop hybrid components for the electrification of vehicles.

The auto makers originally planned to develop the next generation of electric rear axles for all-wheel-drive versions of PSA’s front-drive sedans, an approach that could be used in BMW’s Mini brand.

Later, they decided to develop versions for BMW’s rear-drive cars, because components such as charging systems, batteries and power electronics aren’t affected by FWD or RWD.

In Mulhouse, the JV will produce battery packs, electric motors, generators, power electronics and chargers as well as software for hybrid systems. The French facility now makes the electric rear axle used in the Peugeot and Citroen hybrids, as well as chassis parts and brake discs.

Production won’t begin until 2014, so recruitment for factory-floor jobs has not started.

In effect, the auto makers will manage the JV somewhat like PSA treats its parts subsidiary Faurecia, as an independent company free to establish its own contracts. It will outsource some development work to suppliers and will seek other customers for what it calls an “open technology platform.”

The technical center in Munich has its own building, but for the moment it continues to depend on BMW for infrastructure including information technology, BMW spokesman Frank Strebe says.

The JV will become more independent in January, when staffing will be nearly complete.

Some key positions already have been filled, Strebe says, adding, “There will be additional openings in the weeks and months ahead when we know what we are missing.”

According to its website, the JV “is looking for experienced electrical and electronic engineers and technicians with the spirit of adventure – pioneers, explorers and trendsetters. We are focused on recruiting people who are open-minded, creative and agile, yet always focused and proactive.”

Top executives appointed thus far are split evenly between BMW and PSA. BMW provides the chief financial officer, Joerg Kemminer, and chief technical officer, Frank Kessler. PSA furnishes the head of production, Edgar Gaillot, and purchasing chief, Nicolas Sechet.

Suppliers involved with the current PSA hybrid include Robert Bosch for the 37 kW (50 hp) electric motor, 8 kW (10.6 hp) alternator and power electronics that handle the 200V system. Sanyo provides the battery and GKN Driveline provides gears.

BMW’s and PSA’s decade-long partnership in designing and building 4-cyl. gasoline engines has been extended to a new generation of engines.

More than 1.8 million units were manufactured for Peugeot, Citroen and Mini vehicles through last year. The auto makers now are working together on developing Euro 6 gasoline engines.