General Motors and PSA Peugeot Citroën have created a global alliance in a bid to pool their strengths and increase their competitiveness on the European market. The partnership will allow the two automakers to reduce production costs, improve efficiency, cut back on greenhouse gas emission and increase their individual purchasing power.
The alliance is based on two key elements: the sharing of vehicle platforms, components and modules and the establishment of a strong purchasing venture with a combined volume of around $125 billion per year. Each company will remain an independent entity, however, and they will still compete against each other on the international automotive market.
The partnership will first focus on compact, midsize, utility and crossover models. GM and Peugeot will also develop a common platform for low-emission vehicles, the first product of which should be launched around 2016.
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| Photo: General Motors |
The alliance is based on two key elements: the sharing of vehicle platforms, components and modules and the establishment of a strong purchasing venture with a combined volume of around $125 billion per year. Each company will remain an independent entity, however, and they will still compete against each other on the international automotive market.
The partnership will first focus on compact, midsize, utility and crossover models. GM and Peugeot will also develop a common platform for low-emission vehicles, the first product of which should be launched around 2016.