BMW Claiming PSA Owes it €50 Million

2015 BMW i8 Exterior
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So BMW and Peugeot 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.



Justin Cupler
Justin Cupler
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  (305) posted on 10.23.2012

i bet psa went with the one that paid more. the one who flirted better betwen bmw and gm won. but psa may be the one hwo will loose.

  (302) posted on 10.23.2012

Liberté, égalité, fraternité, French for "Liberty, equality, fraternity (brotherhood). i guess they did not stand up to their motto.

  (312) posted on 10.23.2012

i think that bmw did the right thing to sue psa. after all, they asked for it.

  (305) posted on 10.23.2012

this is what happens when you back stab someone. let it be an example for everyone.

  (516) posted on 10.23.2012

i guess it is only free to say that the french wanted a menage a trois, but the germans were not going to play along.

  (422) posted on 10.23.2012

@snow: i guess you are right. trust is the hardest thing to find these days. money is what rules everything, honesty is for the weak.

  (452) posted on 10.23.2012

i wonder why PSA went with GM. what did they have and BMW didn’t ?

  (542) posted on 10.23.2012

midocar, i hope this time germany wins. and not because they lost wwII, they deserved that. but because it would be the right thing.

  (475) posted on 10.23.2012

this looks like world war two. france and usa are against germany smiley.

  (509) posted on 10.23.2012

germany is one of the most powerful european countries and bmw is a well established name. and psa chooses to go over to the americans.

  (542) posted on 10.23.2012

if the i8 will not hit the market when it was supposed to because of PSA, then i hope that BMW will get the 50 mill and that PSA will be in debt. they would deserve it.

  (516) posted on 10.23.2012

i hate it when such things affect the future of cars like the i8. but trust is something hard to find these days.

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