General Motors and PSA Peugeot Citroen CEOs

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.