As we predicted when GM bought into PSA and BMW partnered with Toyota something had to give with the joint venture between PSA Peugeot Citroen and BMW. While the plug has not been completely pulled out of the socket the process has begun. According the Wall Street Journal, PSA Peugeot Citroen has now fired shots back at BMW but has not responded directly to BMW saying they are concerned with their partner ‘s finances and ability to remain fiscally viable as a member of the joint venture.

PSA Chief Executive Philippe Varin, testifying before a French parliamentary committee, said that “there is a big question about the future of our joint venture with BMW. Within the framework of our alliance with GM we will find another solution. “Varin, went on further saying, the requirements of BMW regarding specifications for vehicles to be sold in the U.S. and China, and those of Peugeot aren ‘t coinciding “so that the conditions that prevailed 18 months ago are no longer the same. ” That ‘s no surprise that things have changed- considering how much the technology and market has changed in that period of time- PSA is looking for a way out that will not lose them too much money and they will be looking at anyway possible to point the finger at BMW- the truth is once GM invested in PSA the JV should have been terminated.

This Joint Venture, BMW Peugeot Citroen Electrification, was established only 18 months ago and was designed to not only provide electrification to cars within the brands but to develop technology to be sold to other manufacturers.

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