PSA Peugeot Citroen has signed a cooperation agreement with Electricite de France (EDF) to work on the development of electric and hybrid vehicles.

'Through the agreement, the two companies hope to give new impetus to e-vehicle projects and support the development of the market for so-called hybrid vehicles that combine a combustion engine and an electric powertrain,' a statement said.

Both companies say they are committed to promoting the use of environmentally friendly vehicles, notably for business and government fleets.

The agreement focuses on four main areas of development: supporting the wider use of electric vehicles, improving after-sale service, co-ordinating electric and hybrid vehicle research projects and strengthening e-vehicle communication programs.

EDF has announced plans to double the size of its own fleet by 2005 in an attempt to promote the use of electric vehicles in France.