Two of the world's leading carmakers - French PSA Peugeot Citroen and Japanese Mitsubishi Motors Corp - said on Friday that they have worked out a tie-up for the launch of an electric car in Europe by 2010 end.

The co-operation deal for the proposed car was signed between Peugeot CEO Philippe Varin, and Mitsubishi CEO Osamu Masuko. The two companies have already partnered for the construction of a joint-venture car plant in Kaluga, Russia, for producing cars and SUVs from 2011.

The yet-to-be-named electric car will be developed on the lines of Mitsubishi's i-MieV, which was launched in Japan in June. PSA will be selling the car in two versions for its Peugeot and Citroen brands.

About the proposed car, PSA Peugeot Citroen spokesman Jean-Marc Sarret said that the vehicle will be built in Japan; and that the two companies are targeting eventual yearly sales of 50,000 vehicles worldwide. Sarret further said that while 50 percent of the targeted sales will be made by Peugeot and Citroen in Europe, the remaining 50 percent will be made by Mitsubishi in Japan and in other countries.

Adding that the car battery will be recharged in six hours and drive 130 kilometers, Sarret said that Peugeot and Citroen will announce the names of their respective electric cars in the coming days.