Peugeot Broadens Cooperation With GM image

General Motors and PSA Peugeot Citroen plan to expand their alliance to include more vehicle categories and technologies.

Besides the pooled development and production of subcompacts and mid-sized cars announced in February, the companies may also share larger vehicles, dual-clutch transmissions and a small car for emerging markets including Latin America. GM’s experience with larger vehicles and crossovers will certainly come in handy for Peugeot, whose main market segment is generally small cars. Peugeot declared that plans to assemble a new compact vehicle at its Madrid plant have been suspended indefinitely.

On February 29th the two companies announced their broad-based alliance, pledging savings from shared purchasing costs, research and development, vehicle platforms and production, and also study cooperation opportunities in minivans, crossovers and small cars with hybrid powertrains or fuel-efficient downsized combustion engines.

Being supervised by the 10-member alliance steering committee, the two companies will also prepare working groups to develop joint projects including compact minivans and low-emissions small cars.

The alliance between the two companies would allow GM “to help Opel recover by pooling a number of costs and PSA to penetrate emerging markets much more quickly,” said Yann Lacroix, analyst with Euler Hermes.