Automotive News is reporting that stories in two other papers, France's La Tribune and England's The Financial Times, assert that General Motors and PSA Peugeot Citroën are "in advanced talks about an alliance." Neither maker would comment on the stories, but it has been well documented that both are looking to turn around their European operations. Peugeot's parent announced 6,000 job cuts late last year and the immediate cessation of Le Mans racing this year. Opel lost hundreds of millions last year and took on a new CEO with a near-vertical climb ahead based on the prognosis for the European market.

If the talks are concluded in the way reports indicate, Opel/Vauxhall and Peugeot would cooperate on projects from developing engines and transmissions to complete models that each could sell. Peugeot already has partnerships with several other automakers, but none are as involved as this one could potentially be. It's understood that no shares in either company would change hands, but a partnership this intense would still require the approval of the Peugeot family.

We wonder if Opel/Vauxhall and Peugeot can do together what each can't seem to achieve alone. Sure, Opel could lower its development costs and with a joint model Peugeot could gain less expensive access to wider markets, but can the two different cultures create cars that would serve their respective brands? Suggestions are that talks are far enough along that an agreement, if achieved, could be announced at the Geneva Motor Show next month.


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  • 35 Comments
      dirtyblueshirt
      • 2 Years Ago
      Maybe GM can get some real hatchbacks instead of that Daewoo crap they have now...
      aatbloke1967
      • 2 Years Ago
      GM Europe already has a number of established alliances. It has a partnership with Renault to produce its commercial vans and has done for the past fifteen years; it has been using Fiat's JTD engines for a similar period, and it has a partnership with Suzuki to produce the Agila. The fruits of this partnership will be interesting - I'm curious as to whether it is considering replacing one or more of the existing external manufacturing alliances with this one.
      Jmaister
      • 2 Years Ago
      In short, just another set of "not enough profit" talks
      Michael Lawler Shyu
      • 2 Years Ago
      Mark my words, alliance with Peugeot and you will loose my business GM. I don't like anything Peugeot has to offer engines, chassis, models. GM needs to focus on GM.
        carboy55
        • 2 Years Ago
        @Michael Lawler Shyu
        Because we all should care about your politics? Do you eat Freedom fries, Mr. Red State?
        SteveM
        • 2 Years Ago
        @Michael Lawler Shyu
        Aside from the hyperbole I'd like to toss at your mildly obtuse remark, doesn't it occur to you that GM is focusing on GM??? They're loosing money in Europe, and this may be a "win-win" for them. Since I haven't seen a Peugeot on these shores for anything other than racing, I'll have to reserve comment on their product. Step up and be brave Michael - this is the 21st century.
        LooneySantee
        • 2 Years Ago
        @Michael Lawler Shyu
        Micheal, do you like the very successful Mini ? Yes , it's owned by BMW, but guess who makes the engine??..........it's Peugeot!!, but BMW doesn't want anybody to know that.
      ken
      • 2 Years Ago
      Just getting a little better, GM is starting to swell in brand counts again.
      Zoom
      • 2 Years Ago
      Didn't GM learn anything with SAAB?
        Sealy
        • 2 Years Ago
        @Zoom
        Didn't Europe learn anything from SAAB? Anyone that would get in bed with GM deserves whatever disease they catch. GM could screw up a one car funeral.
      Peter Foglia
      • 2 Years Ago
      Attention Peugot-Citroen! I'd talk to whoever's left up at Saab before I cut any deals with GM. A little due diligence here...
      truckguy
      • 2 Years Ago
      GM AND NISSAN are number one. period.....
        Anders
        • 2 Years Ago
        @truckguy
        Nissan? Where? In the world? In Europe? No. Not even Renault (which owns 40% of Nissan) is that large. GM's European division (Opel/Vauxhall) is certainly not #1.
      • 2 Years Ago
      [blocked]
      RobbieAG
      • 2 Years Ago
      The only possible up side I can see from this is economy of scale for both parties. It's difficult to see how the cultures will work together. Apparently it's very difficult to make a profit in Europe these days. There are very few that do.
        Georg
        • 2 Years Ago
        @RobbieAG
        it is pretty easy to make huge profit in europe... just ask VW, Audi, Skoda, Seat, BMW, Mercedes, Porsche, Kia, Hyundai, Chevrolet etc... they know how to do it... the euro overall cars sales droped only by 1.1% not 10%
          Chongkai Zhu
          • 2 Years Ago
          @Georg
          Both Seat and Chevrolet (GM Europe) are losing money instead of make a profit for the recent years.
      MANARC100
      • 2 Years Ago
      I guess this would work on the development side. Some Opel models are already same/very similar to Buicks which gives that development a good spread accross higher world wide volume for those models. The other models that are european only and thus have way less volume could be linked to Peugeot to get similar economies of scale. I doubt it would go from Peugeot to Opel to Buick and to your local showroom here in America.
      Gedebore Houston
      • 2 Years Ago
      Wonder too what this alliance can give. Future models in each country, just rebranded cars ? C4 Aircross and 4008 are just ugly copies of the Mitsubishi ASX, so i don't want rebranded Chevys or anything else.
        • 2 Years Ago
        @Gedebore Houston
        [blocked]
        Matt
        • 2 Years Ago
        @Gedebore Houston
        Pretty sure this alliance would be strictly Europe based, with no impact on anything offered in the US.
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