September 30, 2010

Automakers Announce Electric Vehicle Partnership

Two foreign automakers announced Wednesday they have joined forces to develop light commercial electric vehicles.

Japan's Mitsubishi Motors and France's PSA Peugeot Citroen said they reached an agreement to begin technical development of electric versions of the Peugeot Partner combi-van and the Citroen Berlingo. Their aim is to begin production by the end of 2012.

The two companies threw out an ambitious capital partnership earlier this year that would have created the world's sixth-largest auto alliance. The would-be alliance was scrapped due to reports of financial disputes.

The new agreement is basically a cooperation to share resources and cut costs in a bid to catch up with rival carmakers.

Mitsubishi and Peugeot reached an agreement in April that will see the launch of a compact SUV in Europe in 2012, based on the existing Mitsubishi RVR and its counterpart, the ASX.

Automakers around the globe are joining forces to save billions of dollars through sharing technology and working to produce low-pollution electric vehicles.

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