BMW claims PSA owes 50 million euros

News | October 24th, 2012 by 2
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BMW and Peugeot Citroën (PSA) had a long business relationship that span across multiple areas, such as engine co-development, electric hybrids and carbon fiber, but the happy marriage came to an abrupt end this year.

“This cooperation will not go on, there will be no jointly developed products,” Peugeot head of research and development Guillaume Faury told Agence France Presse.

The rift was caused by the new venture signed by Peugeot with GM early this year which “changed the joint venture’s conditions,” a BMW spokeswoman had said.

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BMW and PSA spent 100M euros (US$129M) on the venture and BMW is holding PSA to its promises by demanding €50 million, according to media outlets in France.

PSA has yet to official reply to these news, but we expect to learn more in the upcoming weeks.