GM and Peugeot to Built Vehicles at One Another’s Plants to Strengthen Alliance image

According to anonymous sources GM and PSA Peugeot Citroen plan to strengthen their partnership by jointly manufacturing vehicles at one another’s plants.

According to the sources Opel might manufacture the Citroen C3 Picasso at the Zaragoza plant in Spain and the next-generation Zafira might be built at Peugeot’s factory in Sochaux, France. Neither of the automakers was available for comments.

Both automakers are struggling to fill their underutilized plants. Opel has presented its plans to close the Bochum plant in Germany by the end of 2014, while Peugeot aims at reducing its workforce in France by 17% and close the Aulnay plant, near Paris. By closing this plant Opel hopes to reach profitability in Europe by 2015 and end 15 consecutive years of loses for GM in Europe.

Currently Opel manufacture the C3 Picasso in Trnava, Slovakia and the Zafira van will be transferred next year from the Bochum plant to Ruesselsheim, where the automaker has its headquarters.

“This will make Ruesselsheim the site to exclusively build the two largest and most work-intensive Opel model classes – the Opel flagship Insignia in all its versions and the Zafira Tourer,” Opel said.

Source: Bloomberg