Mitsubishi, Peugeot Plan Electric Car

By DAVID PEARSON and YOSHIO TAKAHASHI
Mitsubishi Motors Corp. of Japan and French partner PSA Peugeot Citroën SA said Monday they plan to launch an electric car model in Europe by late 2010 or early 2011 in response to stricter carbon-dioxide emissions regulations.
Mitsubishi Motors will produce the zero-emissions vehicle, which will be based on its small Imiev electric car. The company plans to launch the Imiev in Japan this year, and it is looking at other potential markets for the vehicle in addition to Europe, including the U.S.
A spokesman for Peugeot Citroën said that, if European demand for electric vehicles develops significantly, production of the vehicles could be located closer to the market.
Mitsubishi plans to sell the Imiev in Europe under its own brand, and Peugeot Citroën will market it under the Peugeot nameplate.
Citroën, Peugeot's sister brand, will be showing an all-electric version of its C-Cactus concept car at the Geneva Motor Show this week.
Lithium Energy Japan, a joint venture of GS Yuasa and Mitsubishi Motors' parent company, Mitsubishi Corp., will supply the batteries that will power the vehicles.
Peugeot and Mitsubishi's move comes after French car maker Renault SA said last month that it aims to become the market leader for low-emission internal combustion engines and no-emission electric powertrains. With its Japanese partner, Nissan Motor Co., Renault is developing a range of all-electric powertrains to cover vehicles ranging from city cars to large vans, said the company's senior vice president for powertrain engineering, Jacques Prost.
Peugeot Citroën and Mitsubishi Motors already cooperate in making a range of midsize sport-utility vehicles. Last year, they disclosed plans to start making these vehicles based on Mitsubishi's Outlander in Russia.
The industry still faces a bumpy road to an era of full-blown battery-powered cars. Gasoline prices have come down, potentially damping the public's willingness to embrace alternative-fuel vehicles. Safety has also come into question, as some lithium-ion batteries -- widely believed to be the key to making viable electric cars -- have shown a tendency to overheat and sometimes catch fire.
Auto makers with eco-friendly vehicles include Toyota Motor Corp. and General Motors Corp. Toyota's Prius hybrid is a gasoline-fueled car with an electric engine that propels the car at low speeds and assists the gasoline engine when accelerating. GM's Chevrolet Volt is an electric car with a small gasoline engine for backup power.
Write to David Pearson at david.pearson@dowjones.com and Yoshio Takahashi at yoshio.takahashi@dowjones.com