Union will result in shared platform technology and parts purchasing savings

General Motors and PSA Peugeot Citroen have announced the creation of a strategic alliance.

The agreement will lead to the sharing of vehicle platforms, components and modules and the creation of a global purchasing joint venture for the sourcing of commodities, components and other goods and services from suppliers.

The platform sharing plans will initially focus on small and midsize passenger cars, MPVs and crossovers. The companies will also consider developing a new common platform for low-emission vehicles. The first vehicle on a common platform is expected to launch by 2016.

Each company will continue to market and sell its vehicles independently and on a competitive basis.

As part of the agreement, GM plans to acquire a seven per cent equity stake in PSA Peugeot Citroën, making it the second largest shareholder behind the Peugeot Family Group. However, GM will have no say in the running of the company.

The shares bought by GM are part of a larger number being offered for sale by PSA Peugeot Citroën, as it seeks to raise around $1 billion to fund investments. The company's market value based on its current share price is $3.6 billion.

In addition, the alliance is exploring areas for further co-operation, such as integrated logistics and transportation.

GM and PSA Peugeot Citroën estimate the alliance will provide joint savings for the companies of $2 billion annually within five years.

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17

29 February 2012

As I thought it would be, this pretty much apes what happened with Fiat. In theory it should work well for both parties.

On that subject, I see the Vauxhall / Fiat tie up is still in operation on the commercial vehicle side.......

Recognise a re-nosed Doblo?

 

 

It's all about the twisties........

29 February 2012

Great news for GM - they now have access to some technology!

Terrible for Peugeot and Citroen. Who should have sought after someone with more to bring to the party.

29 February 2012

I dont see what is in this alliance for Peugeot Citroen.I would have thought BMW,Ford or aToyota would have been better partners as PSA have ongoing co operation with those companies.Time will tell.

29 February 2012

I don't think this is a good move at all for Peugeot and Citroen. I think anyone would be mad to jump into anything with GM. Just look at SAAB. The French companies could lose their identity completely here. We'll see what happens.

"The creative adult is the child who survived."

29 February 2012

I agree with the points raised, PSA/GM is a mistake, PSA/FORD would have worked, they already have a joint engine venture that produces very good engines, PSA are starting to produce a nice range between them, they are just lacking the sparkle of a proper chassis, a stripped out 208 or 308, riding on Fiesta/Focus chassis, and DS3/DS4 Racing would have taken the the fight to Renault Sport and Mini.

From this deal the greatest benefit will go to GM.

29 February 2012

I hope a good future for PSA.

And I hope no bad news after the french presidential election, here where firms have to wait later to annouce their redundancy plans.

29 February 2012

[quote TegTypeR]On that subject, I see the Vauxhall / Fiat tie up is still in operation on the commercial vehicle side.....[/quote]

All the motor manufacturers are in co-operative deals; Vauxhall Vivaro/Renault Traffic/ Nissan whatever:Ford Ka/Fiat 500; Fiat/Peugeot/ Citroen vans; Vauxhall Agila/Suzuki Splash;etc.

The the engine tie ups; Land Rover/Jaguar/Ford/Peugeot/Citroen for diesel engines; Fiat/GM/Suzuki diesel engines; JLR petrol engines are Ford.

29 February 2012

It seems from this deal that GM have lost faith in Opel/Vauxhall and decided that co=operation with PSA will be better for them, at least GM don't have a say in the running of PSA - that would be silly given their recent record. If PSA are simply doing this to obtain finance and gain a bigger potential market for their technologies then it would appear that they have done the right thing. Good luck to them.


Enjoying a Fabia VRs - affordable performance

29 February 2012

I think this is good news, especially for PSA, should give them funding to stay a float if they had a bad 2011

29 February 2012

Good news for the french tax payer as they won't have to support peugeot citroen anymore, they're the American's problem now.

GM kept Saab going for a bit longer when they hit rock bottom now they wasting money on another unpopular mainstream company

 

Hydrogen cars just went POP

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