A possible alliance between Peugeot Citroen and GM is on its way, a deal that could dismiss France’s leading car maker’s existing partnerships with BMW, Mitsubishi Motors and Toyota.
The 200-year-old French company, Peugeot, was hit by an economic downturn in Europe, where it sells more than 50% of the 3.5 million units sold annually. The sales for the Peugeot 207 hatchback and Citroen C4 Picasso minivan fell with $578 million in 2011. This concerns Peugeot’s officials who said that they are looking for projects for cooperation and alliances, trying to improve the strategy of globalization and performance improvement.
For GM this alliance would mean a possible solution for its loss-making Opel and Vauxhall brands in Europe. Taking into consideration that GM Europe lost $700 million in 2011, the company announced that it was in talks with unions and employee representatives on ways to cut costs and return Opel and Vauxhall to profitability.
After announcing a cost-cutting plan of 6,000 jobs last October, Peugeot Citroen aims to achieve 1 billion euros savings this year. The company also aims to raise 1.5 billion euros through asset sales, including property and a stake in its Gefco logistics subsidiary.