Mitsubishi to Produce i MiEV Electric Cars for Peugeot

Japanese automaker Mitsubishi Motors Corporation recently signed an agreement with French group PSA Peugeot Citroen in order to supply i MiEV electric cars. Although it's not yet confirmed, it may seem like the two companies are planning to ship approximately 10,000 units per year by 2011, according to the Nikkei business daily quoted by Reuters.

As you might know, the European authorities are encouraging local automakers to concentrate on electric cars, offering incentives and tax exemptions to all companies included in this segment of the industry. The French government is offering up to 5,000 euros ($6,800) for electric car manufacturers, the aforementioned source explained.

Mitsubishi's i MiEV is said to be launched in Japan during the summer with an estimated price of 2 million yen (that's about $21,500), Nikkei added, but the Japanese automaker has not yet unveiled pricing details.

What's interesting is that the Mitsubishi – PSA agreement enhances competition in the region as Peugeot's rival Renault is already receiving electric vehicles from Nissan, often referred to as the main competitor for Mitsubishi.

According to the Japanese business daily, Mitsubishi estimates a production of 2,000 i MiEV units in the first year of availability, with capacity increased to 4,000 and 10,000 vehicles in the following two years.

i MiEV saw daylight in 2006 under the form of a concept car displayed at the 22nd International Battery, Hybrid and Fuel Cell Electric Vehicle Symposium & Exposition in Yokohama and was especially introduced as a vehicle addressed to crowded cities, benefiting from Mitsubishi's MiEV technology. The powerful lithium-ion battery provides an autonomy of up to 130 kilometers for a single charge with top speed rated at 130 km/h (80 mph).