Building on their partnership announced last year, the new seven-year agreement will see the two firms will develop connected services for PSA vehicles by now enabling other industries and companies to propose new added values services in their vehicle. This includes automotive distribution, smarter cities and retail.

The companies said until now most of the conncted car innovations available have primarily focused on smartphone apps, navigation and roadside assistance. IBM and PSA will share the responsibilities of developing, selling and marketing, as well as delivering and implementing these services with new and existing clients.

“We realized early on that connected vehicles, as part of the Internet of Things, were a key factor in the improvement of the customer experience towards our Brands," said Brigitte Courtehoux, PSA Peugeot Citroën. “In partnership with IBM, we are unleashing connected services to the masses, so consumers can experience a new level of comfort and convenience from their cars, while industries seize new opportunities to deliver personalized services.”

The agreement will focus on commercializing services and building next-generation technical solutions necessary to deliver connected services. At the first Innovation Center in Paris, employees from both companies will co-create with clients to develop connected solutions to meet customer needs.

“The ways we facilitate our lives and work has changed dramatically with the rapid adoption of mobility and the rise of the Internet of Things,” said Dirk Wollschläger, general manager, global automotive industry at IBM. “Under this partnership with PSA Peugeot Citroën, we are pushing the boundaries of mobility even further to give a broad set of industries the opportunity to tap the promise of the connected car.”