Mitsubishi and Peugeot strengthen electric vehicle ties

Mitsubishi Motors Corp and PSA Peugeot Citroen yesterday became the latest auto companies to team up in an attempt to accelerate their push into the electric vehicle market.

The two companies said in a statement that they have started a joint feasibility study for the development and supply of power trains for electric vehicles, adding that the project will initially focus on plans for new light commercial vehicles.

The alliance builds on a partnership agreement from last year that will see Peugeot's iOn electric car and Citroën C-ZERO draw on the Mitsubishi's iMiev electric vehicle design and technology.

"This new step results from continuing discussions between the companies to expand their existing current collaboration on electric vehicles," the companies said in a brief statement.

Mitsubishi and Peugeot are the latest in a line of car firms to team up in an attempt to spread the costs and risks associated with the development of new electric vehicles.

For example, both Toyota and Daimler have invested in US electric car startup Tesla as part of deals that have also seen the companies co-operate on technology development, while the Renault-Nissan alliance has teamed up with infrastructure firm Project Better Place to work on a global electric vehicle trial.