Today, October 24th, GM and PSA Peugeot-Citroen announced the steps of their Global Strategic Alliance.
In March GM and PSA Peugeot Citroen surprised everyone by forming an alliance after the US automaker bought 7% of the French company’s stock. The agreement is based on two main pillars: the first one is to jointly buy components, commodities and other goods necessary to manufacture cars, and second one is to share components, modules and vehicle platforms.
According to the agreement the two automakers will manufacture four common vehicles, which include these segment entries for both groups: a joint program for a compact-class Crossover Utility Vehicle for the Peugeot brand and a compact-class Multi-Purpose Van for Opel/Vauxhall, a joint Multi-Purpose Vehicle program for Citroen and the small car segment for Opel/Vauxhall , an upgraded low CO2 small car segment platform for PSA’s and Opel/Vauxhall’s next generation of vehicles for the European market and other regions, and a joint program for Opel/Vauxhall, Peugeot and Citroen’s mid-size cars.
PSA and GM have set a synergy target of $2 billion per year in the following five years. The first vehicle built on a common platform is to be launched in 2016.