Peugeot unveils the world's first diesel-electric, the 3008 Hybrid4, at the Geneva Motor Show.

There was electricity in the air at the Peugeot stand as the French maker used the Geneva Motor Show to introduce a variety of new hybrids and plug-ins – and outline its new battery car joint venture with Germany’s BMW.

Peugeot finally took the wraps off the look-awaited 3008 Hybrid4, the first diesel-electric vehicle in the world. This model will be available in a limited edition of 300 units, which will be ready to hit the market in the fall.

The 3008 Hybrid4 is equipped with a 163 horsepower 2.0-liter HDi diesel engine driving the front wheels. The electric motor adds another 37 hp, but creates a sort of through-the-road all-wheel-drive system by powering the rear wheels.

This concept offers not only AWD, but also a maximum of 200 hp and the possibility to reach an average fuel consumption of 3.8 l/100 km – by European terms — or 62 mpg.

In 2012, Peugeot will also bring a Hybrid4 version of the larger 508 on the market. Meanwhile, the conventional versions of both the 508 and 308 will be getting the new stop/start technology which shuts the engine down, temporarily, instead of idling.

One of two Peugeot battery concepts unveiled in Geneva, the gull-winged HR1.

With the French government pressing its domestic makers to push into battery power, Peugeot is moving aggressively with plans to electrify and also brought two concept electric models to Geneva, the HR1 — a combination city car, coupe and mini-SUV — along with the MU, a new form of transport in urban areas.

Like a number of automakers worried about the challenges of developing and funding battery technology, Peugeot has decided to reduce the risk by entering a partnership with BMW.  The German maker recently announced plans to launch an all-new sub-brand focusing on sustainable mobility, BMW i.  (Click Here for more.)

The two new partners outlined their plans for the venture, dubbed “BMW Peugeot Citroën Electrification,” which now faces review by European anti-trust regulators.

With dual headquarters in Munich, Germany and Mulhouse, France, the venture will employ some 400 people by the end of 2011. The plan is to start operations in Germany during the second quarter of 2011 with new hybrid components available for vehicles from both manufacturers 2014.

Another 250 jobs are expected to be added in Mulhouse in time for the production start in 2014. The management for the newly formed company, as well as its workforce, will largely come from employees of the JV partners.

Under the joint venture, BMW and PSA will be able to create a platform for electrification and aim at the development of a standard set of components, including batteries, electric motors, dynamos electronics, chargers and software. The operation will also integrate suppliers by outsourcing development work.

The venture also plans to sell hybrid components to third parties. The pair are expected to invest a combined 100 million euro.