GM to Build Next-Gen Citroen DS5 and Peugeot 508 in Germany image

PSA Peugeot-Citroen and GM closed a deal to create a JV and share component modules and platforms.

Therefore Peugeot and Citroen models could be manufactured in the near future at a GM plant in Germany. PSA rejected the reports as speculations but the German newspaper Frankfurter Allgemeine Zeitung announced it has seen the proposed plans according to which next-generation Citroën DS5 are to be manufactured GM’s Rüsselsheim plant in 2015 and the next-generation Peugeot 508 in 2016.

The model plans suggest state that two French vehicles will share the same platform with the next Insignia models, including GM’s ‘Country Tourer’, which will be a rival for the Audi Allroad. This means that the DS5 compact hatchback will replace the C5 mid-size sedan. If the reports are accurate, and the companies plan to combine Insignia, 508 and DS5 production, this implies that the Rüsselsheim plant will be filled and therefore a third shift will be added.

As demand for the Mondeo continues to decrease in the European market, producing 300,000 vehicles annually at the Rüsselsheim factory would make the models profitable. It remains to be seen whether the rumors were just ‘speculation’, as PSA declared.