The relationship between General Motors and PSA/Peugeot Citroën got off to a bumpy start last year, and Automotive News says that the tie-up between the two automakers will be short-lived. Heavy losses from both companies is causing the alliance to be scaled back, but PSA's talks with China's Dongfeng could kill the deal altogether.

Originally, about 40 shared vehicles were planned between Opel, Peugeot and Citroën, but the report says that, in the end, only two will make it to production – small vans like the Opel Meriva and Citroën C4 Picasso. For now, GM and PSA will continue a joint purchasing agreement, but this means that co-developed versions of the next-gen Opel Corsa, Peugeot 208 and Citroën C3 small cars are dead. Instead, another AN report says that GM will intensify its efforts to develop future Opel products on its own, which includes said next-gen Corsa that will reportedly switch from its current Fiat-based platform to GM's Global Gamma platform shared with the Chevy Spark and Buick Encore.

It isn't clear what would happen with the shared vehicles and joint purchasing, though, if Dongfeng manages to acquire a 30-percent stake in PSA/Peugeot Citroën. Dongfeng is a Chinese rival to SAIC Motor, which works with GM in China. While this soured deal mostly has implications for small cars in Europe, we wonder what it means for GM's fullsize commercial van plans in the US.


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    • 1 Second Ago
  • 33 Comments
      thecommentator2013
      • 1 Year Ago
      Good for GM.
      Technoir
      • 1 Year Ago
      GM may be better off without PSA. PSA is a company on a steep way down, and that can bring only trouble.
      aatbloke1967
      • 1 Year Ago
      Carguy1701, that's because you're a child, have never travelled, and like most Americans, don't have a clue. The real issues were obvious from the beginning - how such a move would affect Vauxhall/Opel's position, the commercial JV between GME and Renault, and existing relationships between GME and Fiat, and PSA and Ford with regard to joint mechanical/parts sharing ventures.
      groingo
      • 1 Year Ago
      GM is not a company to be trusted for example when they at the last minute killed the Saturn deal with Penske and when they agreed to let Opel go bankrupt and then again at the last minute changed their minds, nothing new here with Government Motors.
        the.fog
        • 1 Year Ago
        @groingo
        ...and the truth comes out in the last sentence. By the way, thanks for the tax dollars. My new GM vehicles are awesome!
      • 1 Year Ago
      [blocked]
        thequebecerinfrance
        • 1 Year Ago
        Russia? Wow, you think they have it great? I got news for you.
        Technoir
        • 1 Year Ago
        Russia is a horrible place to live. Sweden is a frozen country for 9 months a year.
          aatbloke1967
          • 1 Year Ago
          @Technoir
          And yet Sweden, with the rest of Scandinavia, boasts a far better quality of life and living standard than anywhere in North America.
        Michael Scoffield
        • 1 Year Ago
        I bed you take a trip to Russia and see how the majority of Russian live in their poor villages or crappy urban ghettos. It's only worth living in Russia if you are rich. If not it's mostly hell ! (I can speak from my own experience)
      lrx301
      • 1 Year Ago
      How many of them so far? GM-Isuzu, GM-FIAT, GM-SUZUKI, GM-SAAB, GM-SUBARU,... I bet GM won't stop here.
        OptimusPrimeRib
        • 1 Year Ago
        @lrx301
        It's better than what Daimler did to Chrysler. They sucked them dry and nearly destroyed them.
          thequebecerinfrance
          • 1 Year Ago
          @OptimusPrimeRib
          Chrysler was able to destroy itslef without any help. Bad products, terrible reliability and quality. Easy to blame Mercedes but at the end Vhrysler was doomed.
          the.fog
          • 1 Year Ago
          @OptimusPrimeRib
          @thequebecerinfrance Not true... Chrysler was actually doing VERY well in the 90s.
        the.fog
        • 1 Year Ago
        @lrx301
        GM-Isuzu was and still continues to be a success. GM-Suzuki was a HUGE success, especially when it comes to GM-DAT. Saab was damaged goods to begin with; GM should've never wasted their money. GM-Subaru on the other hand WAS a worthless tie up. (Just like GM-Fiat) But GM signed the GM-Fiat deal with hopes of purchasing Alfa. Had GM gotten its hands on Alfa, I'm willing to be Saab would've been killed LONG before now.
      diego3336
      • 1 Year Ago
      GM and its failed joint ventures. Nothing new here...
      RGT881
      • 1 Year Ago
      While I am not a big fan of GM, I do think that walking away from PSA is the best thing they can do. PSA is not driven by business minded people, but by a short-sighted government. Although I wonder what the trigger for this failure was, was it same story as with VW and Suzuki alliance?
        thequebecerinfrance
        • 1 Year Ago
        @RGT881
        Lol, what a load of crap. The company was doing great before the crisis. Pls stop talking out of you a**.
          aatbloke1967
          • 1 Year Ago
          @thequebecerinfrance
          PSA sell their products globally but does not cater to the two FMVSS countries. That is not regional, nor can you compare the company to the malaise that was old GM. You yanks really do walk around with blinkers on.
          the.fog
          • 1 Year Ago
          @thequebecerinfrance
          Not true... The company, not unlike GM pre-recession, had some great ideas/products. BUT they're brands were/are 1) regional and 2) marketed at roughly the same buyer. PSA is essentially the "old GM" of Europe.
      whofan
      • 1 Year Ago
      GM should integrate Opel with it`s North American operations like Ford has done with Ford of Europe. I`m no so sure mergers are good in all cases. Chrysler and Fiat makes sense for both.
        aatbloke1967
        • 1 Year Ago
        @whofan
        Ford of Europe isn't integrated into the North American operation - the corporate structure hasn't changed. What has happened is that it finally realised that it can make more money from streamlining its global product lines, like most other major manufacturers.
        thecommentator2013
        • 1 Year Ago
        @whofan
        Opel is already heavily integrated into the GM operations. Not in the same way Ford USA did with Ford UK/Europe.
      NAIF S
      • 1 Year Ago
      No, GM it seems just never learns how to have a partner or be a partner. They just don't get it. They finally make a little money and will lose it in the divorce with nothing to show for it.
      LMI500
      • 1 Year Ago
      This alliance should have NEVER EVER happened to begin with!!!! GM has short term memory, do you remember the Fiat fiasco??? How much money was lost then and probably lose now.
      June Tatman
      • 1 Year Ago
      hyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy
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