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PSA, the parent company of Peugeot and Citroën, this morning denied a report that came out in the Japanese Nikkei business newspaper about a new tie-up with Mitsubishi. The paper had reported that PSA and Mitsubishi would be collaborating on plug-in hybrid vehicles. The two automakers are working together on battery EVs with Mitsubishi supplying a version of its iMiEV to the French company, along with lithium ion batteries for other applications.

However, PSA says that it is developing its own plug-in hybrid technology. This is likely to be based on its Hybrid4 through the road hybrid system that debuted last fall at the Paris Motor Show. This system uses a conventional gas or diesel powertrain driving one axle with an electric motor driving the other. It is mechanically simpler than a power split hybrid and easier to implement. Mitsubishi is also working on its own plug-in hybrid system targeted for a 2013 release.

[Source: Reuters]

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