Toyota and BMW to Expand Agreement/ PSA Joint Venture Ending?

According to media reports, including Automotive News and Reuters, BMW and Toyota are exploring options to increase their joint involvement. An announcement is said to be made this week between the two companies with Toyota supplying BMW with hybrid drivetrains as well as fuel cell technology in addition to the early agreed upon battery collaboration and BMW supplying diesel technology.

This new path seems to be directly related to another situation developing between BMW and a joint venture partner, PSA. An online news article last week by the French paper, La Trubune, noted that due to the recent investment of GM in PSA (8% or so) the joint venture of BMW Peugeot Citroën Electrification was in jeopardy. BMW is said to be concerned with PSA ‘s financial situation and what impact the GM investment has on the proprietary products that were said to reach market in late 2015. BMW internally is looking at its options including buying out PSA ‘s stake in the venture.

Other reports from the German Auto Zeitung indicate that PSA wishes to withdraw from the joint partnership effective immediately and that BMW will inherit the fledgling company to go at it on its own or with another partner.

These stories are ever evolving and our expectation is that by the end of this week Toyota may slide into the PSA slot of the joint venture and BMW will be buying Toyota hybrid drivetrains as part of the deal.

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