SANYO TO SUPPLY BATTERIES FOR PEUGEOT CITROEN DIESEL HYBRIDS

Sanyo Electric Co. (TSE:6764) announced Monday that it will supply nickel-metal hydride batteries to France's PSA Peugeot Citroen Group for what will be the world's first diesel hybrid vehicles.

In addition to supplying the batteries, Sanyo will collaborate with PSA Peugeot Citroen to develop the overall battery system including the power-output control unit.

PSA Peugeot Citroen has developed a proprietary hybrid drive mechanism dubbed Hybrid4 which powers the front wheels with a diesel engine and the rear wheels with an electric motor. Sanyo will supply the battery system for cars that incorporate the Hybrid4 drive mechanism. The first two diesel hybrid vehicles will be released in 2011 -- the Peugeot 3008 and the Citroen DS5.

Sanyo will manufacture the nickel-metal hydride cells and assemble them into battery units in Japan and then export them to PSA Peugeot Citroen.

Sanyo already supplies nickel-metal hydride batteries to Honda Motor Co. (7267) and Ford Motor Co., and is unofficially planning to supply lithium ion batteries to Volkswagen AG and Toyota Motor Corp. (TSE:7203). PSA Peugeot Citroen would be the fifth automaker with which Sanyo has teamed to supply batteries for environmental cars.

(Nikkei) bl

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