The ink is only just dry on the contract detailing the collaboration between General Motors and PSA Peugeot Citroën, and already there is talk of going further. GM purchased a seven-percent stake in PSA to form an alliance that would work together on platforms, small and midsize cars, and MPVs and crossovers, the aim being to strengthen the positions of PSA and Opel. Plans include moving the Opel Corsa to a Peugeot platform, while the Citroën C5 and Peugeot 508 move to GM platform technology.

Peugeot had announced the €220-million development of a dual-clutch transmission that was to be built at its Valenciennes, France factory but just shuttered the project saying it might get them from GM instead. The company also spoke of developing a new small car with GM for the Latin American market.

Another development has been the rearrangement of factory closures. When the deal was announced analysts said that the real issue for Opel and PSA was surplus plant capacity, but one report in Reuters said that plant closures wouldn't be affected by the tie-up. Apparently that's not the case, with an unnamed source telling Reuters in a second story that plant closures were a piece of the deal from the beginning. Peugeot has announced that it wouldn't produce a new small car at its plant in Madrid, Spain, but it won't detail its plant closures until after the French presidential election later this year.


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    • 1 Second Ago
  • 11 Comments
      Danaon
      • 2 Years Ago
      This was a really stupid deal. GM signed on to this because their European operations are in the hole in a big way. But their problem is that they have a huge amount of overcapacity in some countries that are very expensive to manufacture in to begin with. They should have closed their factories in the UK and Germany and just sent that production to South Korea, Poland or Hungary. Until they actually do something to eliminate their overcapacity they will continue to lose money hand over fist.
      Hazdaz
      • 2 Years Ago
      I wonder what this means in terms of Buick turning into an American Opel. I could see GM using more and more of PSA's platforms for Opel in Europe, but none of those are probably designed with the US in mind (safety requirements and such) since Peugeots and Citroens aren't sold here, so its not like they could easily be brought over here. Is Buick going to once again end up in some weird limbo with no good identity?
      kevsflanagan
      • 2 Years Ago
      Ok wait so while GM seems to be holding to its guns against any company using its technology when/if they buy Saab they are open to the idea of sharing technology with Peugeot? While I understand why GM doesn't wish the Chinese company to have access other companies shouldn't be a issue. 'eh oh well.
        Jei Thom
        • 2 Years Ago
        @kevsflanagan
        If GM shared its (SAAB) tech with the Chinese firm, it probably wasn't guaranteed that their tech wouldn't end up in other various Chinese brands effectively creating more competition for GM in the Chinese market.
      Mchicha
      • 2 Years Ago
      Cadillac needs to put together Peugeots Diesel racing program back at le mans using the Peugeot's diesel racer, it would help them tremendously in Europe from a reputation standpoint...
      Avinash Machado
      • 2 Years Ago
      Hope GM will get good Diesel technology from Peugeot.
      AMG THIS
      • 2 Years Ago
      Look at Akerson, no freaking clue what he's doing. FAIL
      throwback
      • 2 Years Ago
      This is sounding more and more like a Nissan/renault alliance. I wouldn't be surprised to see that type of alliance announced later this year.
      IAB by Shrawan Raja
      • 2 Years Ago
      Peugeot-Citroen would love to have a mini SUV like the Mokka though their own internal program I believe is producing a crossover on the newly launched Peugeot 208. The Peugeot 508 can move to the Gamma II platform, it can be a Cruze underneath.
      Monkeybones
      • 2 Years Ago
      If this means that we can get GM vehicles here with Citroen hydraulic (adjustable) suspensions with GM Magnaride shocks, then I'm very excited.......but.....I dream.....
        Jei Thom
        • 2 Years Ago
        @Monkeybones
        That does sound slick...especially on the full-size cars & SUVs.