Mitsubishi, Peugeot sign electric vehicle deal

TOKYO: Mitsubishi Motors said on Monday it had finalised a deal to supply electric vehicles to Peugeot Citroen, just days after announcing it had decided against a capital alliance with its French partner.

The signing of the agreement follows an outline accord reached between the two companies last year to develop and supply a new car based on Mitsubishi's i-MiEV electric vehicle for the European market.

Under the agreement, Mitsubishi will supply about 100,000 vehicles to the French group to sell under the Peugeot and Citroen brands in Europe, with production due to start in October 2010.

Mitsubishi and Peugeot Citroen last week announced they ended talks on a possible capital tie-up that would have created the world's sixth-largest auto alliance, but pledged to broaden their current cooperation.