PSA Tie-In With GM will Likely End Part of its Relationship With BMW

Mini Cooper & Cooper S

The web tying varying automakers to one another is a very complex, yet delicate thing. One strand heading the wrong direction can cause an automaker to break off another connection, and we see it every day. One prime example was when AMG hacked off its advertising ties with Ducati just because Audi bought the company. Really, what do motorcycles have to do with your competing with Audi in the automobile realm?

Well, we have another bit of info to pass on in regards to one partnership killing another. Recently PSA, the parent company of Peugeot and Citroen , increased its stake in a partnership with GM affiliate, Opel, to develop four vehicle platforms together. This leads BMW to believe that PSA will not have the ability to fulfill its partnership duties in reference to BMW’s developing Hybrid platform.

A BMW spokesperson said “We are discussing conditions for the exit of PSA but we will not make any payments,” in an interview with Reuters. In addition, PSA has accepted the fact that this new relationship with GM will force it to “change the conditions” in its partnership with BMW. This likely means that BMW will buy-out PSAs share of the investment in the project and take development into its own hands.

This will not, however, affect the other relationships that BMW and PSA have going on. The largest of these relationships is the partnership between the two to build the MINI Cooper ’s engine.

We’ll keep an eye on what’s going on with this development and let you know if anything else pops up. For now, this seems like a pretty open-and-shut case.

Source: Reuters

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