So BMW->ke178 and Peugeot->ke68 Citroën (PSA) were once a happy couple, just humming along in a deal that would help bring more hybrid and EV technology to both brands. All was well and good, and the relationship was blossoming into a mutually beneficial deal with no signs of issues. That was until General Motors decided to start flirting with the French automaker.

PSA decided that the grass was indeed greener on the other side and formed a deal with GM to increase its stake in producing vehicles with the American automaker. This apparently is a fatal blow to the deal between BMW and PSA, but BMW isn’t letting PSA get away Scott-free. Part of the BMW-PSA deal was that the two automakers would jointly build a factory to manufacture the hybrid and EV technology and BMW is holding PSA to its promises by demanding €50 million, according to media outlets in France.

With the automotive world in Europe seeing the same types of struggles that the U.S. auto industry went through just a few years ago, €50 million is a lot of money for PSA to pony up. PSA hasn’t yet issued a response to Bimmer’s claim, but chances are this is ultimately the fatal blow to the once-promising BMW-PSA deal.

We’re curious if the upcoming i8 hybrid was secretly a part of the hybrid technology that the two were planning to share. If so, this could be a key reason that BMW has been eerily quiet about the much-anticipated i8. We’ll keep an eye on this situation and let you know what comes of it.

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