BMW’s Reithofer (left) and PSA’s Varin held a joint press briefing on the eve of the Geneva auto show

BMW and PSA/Peugeot-Citroen said they would invest 100 million euros in a joint venture to develop new hybrid technologies.

The two carmakers also said in a press release that r&d for the venture would be based in Munich, where BMW is headquartered; that production would be in Mulhouse, France; and that a total of 400 new employees would be hired specifically for the venture.

The joint venture, called the “BMW Peugeot Citroën Electrification,” is expected to start operations in the second quarter. Its products will be included in both partners’ cars from 2014.

The new hybrid components will equip both partners’ vehicles from 2014.

“This joint venture will also enable us to develop advanced technological manufacturing expertise in Europe in the field of electric powertrains,” said PSA Chairman Philippe Varin.

Added BMW CEO Norbert Reithofer: “For us, joining forces also means significant economies of scale, shared development costs, using standardized components and a faster development process.”

BMW and PSA signed a memorandum of understanding on the joint venture in October. They want to jointly develop and produce standard hybrid components for the electrification of their cars. These products include components such as battery packs, E-machines, generators, power electronics, chargers, and software for hybrid systems.