Opel to build Peugeot-based cars image

General Motors and PSA Peugeot Citroen agreed to collaborate on a new range of small cars and minivans based on the French company’s technology.

However, the carmakers’ joint car programs are nearing some tough decisions regarding the plants where the cars will be made, GM vice-chairman Steve Girsky and Peugeot CEO Philippe Varin said at a news conference in Brussels on Thursday. The two executives announced that Opel’s engineering center in Russelsheim, Germany, will develop successors to the Peugeot 2008 and Citroen C3 Picasso minivans.

“From what I see today there is no negative impact of the alliance on resources on either side,” the Peugeot CEO was quoted as saying by Reuters. However, that may change when it comes to assembling the jointly developed vehicles, scheduled for launch from 2016.
Both Peugeot and Opel are struggling with excess production capacity. Peugeot is closing a plant near Paris and cutting around 10,000 jobs, while GM also plans to close a plant in Bochum, Germany.

“These products are coming to market in 2016 so it’s premature to make any manufacturing decisions. We’ll deal with that when the time comes, somewhere down the line,” Girsky said. The executives didn’t give details of planned alliance models, production or launch dates.