MMC signs PSA deal

Mitsubishi Motors Corporation (

) has signed a Memorandum of Understanding with PSA Peugeot Citroën (

) to collaborate on the production of electric vehicles in Europe.

Both companies undertook a feasibility study for the production of the powertrain series for small urban vehicles in June 2008.

Following the successful results, the companies have begun negotiations to accelerate production for a market launch by the beginning of 2011.

So far, MMC and PSA have agreed to begin production of MMC’s I MiEV, to be manufactured by MMC and sold under the Peugeot brand in Europe alongside Mitsubishi’s I MiEV.

PSA hopes that this agreement will strengthen its foothold in the green cars market. Similarly, MMC expects the project to support its electrical vehicle activities throughout Japan, New Zealand, the US and Europe.