Peugeot suggests expansion of ties with GM into other segments and technology

Jonathon Ramsey — Wed, 28 Mar 2012 08:28:00 EST

Filed under: Europe, Plants/Manufacturing, GM, Opel, Peugeot

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.

Peugeot suggests expansion of ties with GM into other segments and technology originally appeared on Autoblog on Wed, 28 Mar 2012 08:28:00 EST. Please see our terms for use of feeds.

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GM buys 7% stake in PSA Peugeot Citroën, creates global platform-sharing alliance

John Neff — Wed, 29 Feb 2012 12:29:00 EST

Filed under: Europe, GM, Opel, Peugeot, Citroën

General Motors has finally made a move to help its ailing European operations by tying its fortunes on the continent with those of PSA Peugeot Citroën. The two automakers have agreed to a new global alliance in which GM will buy a seven-percent stake in PSA, thereby making it the European automaker's second largest shareholder behind the Peugeot family itself. The shares won't give GM any governance rights over PSA, and the two companies will remain competitors in Europe.

What the alliance will give each company is the ability to share vehicle platforms, components and modules, as well as stronger purchasing power for sourcing components, raw materials and other goods and services. They're combined annual purchasing volume together will be approximately $125 billion. The vehicle platforms most likely to be shared will be small and midsize passenger cars, MPVs and crossovers, with the first one arriving by 2016.

GM says that synergies resulting from the alliance will save approximately $2 billion annually within about five years, though critics argue the alliance doesn't address the main problem plaguing automakers in Europe: overcapacity. While the alliance does give a shot in the arm to both Opel, GM's European subsidiary, and Peugeot, analysts and investors alike still believe that plant closings and consolidations are the remedy required for Europe's struggling automakers. Full details in the press blast after the jump.

Continue reading GM buys 7% stake in PSA Peugeot Citroën, creates global platform-sharing alliance

GM buys 7% stake in PSA Peugeot Citroën, creates global platform-sharing alliance originally appeared on Autoblog on Wed, 29 Feb 2012 12:29:00 EST. Please see our terms for use of feeds.

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