In a move stemmed from the need to stop losses in Europe and deepen the cooperation between the two automakers, PSA Peugeot-Citroen will shift production of a compact minivan to a General Motors factory in Spain.

The two companies said in a joint statement released today that GM’s Opel division would take care of manufacturing a new generation of the jointly developed small multi-purpose vehicle at its Zaragoza production facility, starting with late 2016.

“The alliance between PSA and GM is based on a balanced approach,” the companies said in the statement.

Peugeot, which currently handles production of the Citroen C3 Picasso small van in Trnava, Slovakia, will be the supplier of engines and transmissions for the jointly-developed vehicles.

According to two people familiar with the matter, Peugeot and GM are also in early preparations to make the next generation of Opel’s larger Zafira minivan at the French carmaker’s plant in Sochaux. Zafira manufacturing is also slated to move from the Bochum plant to Ruesselsheim, Germany, where Opel is headquartered, in 2015.

The automakers are both struggling to fill underutilized production capacities in Europe. Opel has laid out plans to shut down the factory in Bochum, Germany, while Peugeot is reducing its French workforce by 17% and closing a plant near Paris.
Via Bloomberg


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