"There are no plans in place or being considered to cooperate with Mitsubishi on plug-in hybrids." Laurent Cicolella, PSA spokesman was quoted as saying by Bloomberg in response to Nikkei business daily's report.
As Nikkei reported earlier today, the deal between the two companies would have worked together on the development and production of engine components. PSA and Mitsubishi would even go further and provide hybrid vehicles to one another. Mitsubishi would have also provided PSA with large capacity lithium-ion batteries.
The two companies would have shared costs in the development of Mitsubishi's plug-in SUV, scheduled to arrive in 2013, as well as in PSA's future diesel-electric vehicle.
The two manufacturers are already involved in an on-going agreement through which Mitsubishi is to provide the French with its i-MiEV electric car starting early next year. A joint venture already exists in Russia, where PSA holds 70 percent of the Kaluga facility.
So far, the cooperation between the two has materialized through the Peugeot 4007 and Citroen C-Crosser, both based on the Mitsubishi Outlander.
If the new venture would have gone through, the two would have entered a race with the Renault-Nissan alliance, the front-runner in the EV race. Further developments are to be expected, despite PSA's denial.
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