GM, PSA Peugeot Citroen to partner on four new vehicle platforms

By Tim Beissmann
October 25th, 2012

FIND DEALS

General Motors and French manufacturer PSA Peugeot Citroen have announced the details of a significant global alliance that will see the two automotive giants collaborate on four all-new vehicle platforms from the second half of the decade.

The announcement follows the official formation of the alliance on February 29, when GM became PSA’s second-largest shareholder (purchasing seven per cent of the company) in a partnership intended to save as much as US$2 billion ($1.93 billion) per year through platform and component sharing and other economies of scale.

The four shared vehicle platform projects include: an upgraded small car platform for Opel/Vauxhall and PSA’s next generation of vehicles for Europe and other regions, a new platform for mid-size cars for Opel/Vauxhall and for Peugeot/Citroen, a new platform for a mini MPV for Opel/Vauxhall and a baby SUV for Peugeot, and another new platform for a larger MPV for Opel/Vauxhall and Citroen.

As such, the platform sharing agreement is expected to give life to the next-generation versions of the Opel Corsa, Citroen C3 and Peugeot 208; the Opel Insignia, Citroen C5 and Peugeot 508; the Opel Meriva and Peugeot 4008; and the Opel Zafira and Citroen C4 Picasso.

The alliance plans to launch the first vehicles from these programs by the end of 2016. The two companies confirmed all four projects would be developed combining the best platform architectures and technology from both sides of the partnership.

Both partners confirmed the above programs should make the previously stated synergy target of US$2 billion per year achievable by 2017.

This year has proved particularly challenging for both European manufacturers who are struggling to reverse a disturbing trend of financial loses, declining sales and shrinking workforces.

GM’s European operations has now lost in excess of US$16.4 billion ($15.9 billion) since 1999, and the business is currently under the control of its fourth new CEO in less than three years.

Meanwhile PSA announced a restructuring plan in July that will see 8000 jobs disappear from the company as it attempts to turn around its troubling financial situation and streamline its production processes.

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Schah7

Why doesn’t General Motors just PHUCK OPHPH. & leave everyone alone.
Monk

Korean design, French reliability?
Huwtm

If GM were so hard up for cash that they needed to beg off the Aus, US and god knows what else Government. How can they go buy half of PSA?
- Pauly
  
  Id hardly call 7% half… but I do see your point.
Unidexter Hopping

Hmmm, collaborative mediocrity.
- Simon
  
  Having worked for a French multinational I can assure you that your comment is freakishly on accurate! After all….bureacracy is a French word…and you only have to look at the EU’s current financial problems to see it in action. Institutionalised mediocrity!
  - Golfmother
    
    Sounds like our government .
    - Simon
      
      French multinationals make our Governments (state and Federal) look efficient!
Doctor

I can hardly wait…. reliability to rival the Chinese I’ll bet.
BTW, this page didn’t display properly on Opera 12.02 but is OK on Firefox.
- Doctor
  
  Now OK.
  - Dejavu
    
    See how many people like your comments?
    
    Exactly.
AndyGF

Why all the hatred? Anyone who still thinks that all french cars are
unreliable need to get their heads read, oh sorry I forgot, they’ve all
been duped by the “oh what a feeling”, fixed price servicing and a mile
long stream of excuses, hearsay and people their friends-friends once
knew (ie: I don’t need to hear them), designed solely to justify a
crushing sense of jealously they feel towards you for choosing an
interesting car.

Do you feel it is your personal responsibility
to prevent everyone (especially those you don’t know) from making a
mistake and buying the wrong car? What do you care? Oh… So it is not
about us… Its about you!
- Monk
  
  Actually, my comment was derived from speaking to a former Frog car dealer who decided he had to shift to Lexus because his conscience couldn’t handle the fact that he was selling 3rd rate cr@p to people.
  - Golfmother
    
    Bit like ford dealers , how do they sleep at night .
- F1orce
  
  Your hatred of Toyota is quite obvious.
  
  The French auto industry is in decline and deservedly so.
  - AndyGF
    
    Ya think? Next time ill be a little less subtle for you… Impartiality is not one of my strong suits, you lot are hardly a bunch of automotive gandhi-ists either. ^_^
    
    The european automotive industry will be around long after the japanese industry is crushed under a red-itchy-blanket…
    - Golfmother
      
      Trouble with F1orce he cant make up his mind wether he loves toyota or hundi , both boring and bland .
      - F1MotoGP
        
        This rule that says we can only like one brand, is this something you came up with? I think I’ll pass…
- Phil
  
  Oh, the irony of you posting such a comment.
  - AndyGF
    
    You’re starting to sound like an alanis morissette single now phil… that would be four and counting?
    - Phil
      
      Go ahead, deflect all you want. Just don’t be a hypocrite.
  - AndyGF
    
    You’re starting to sound like an alanis morissette single now phil… that would be four and counting?
- Ben Green
  
  AndyGF
  I wish I could agree. I can speak from my experience as I have owned eight Peugeots (amongst other vehicles) and while they started out as durable, reliable and far more advanced than a lot of cars through the 70s and 80s (IRS, passive rear wheel steering, rain sensors from 1998, amazing turbo-diesels etc) when I had to spend over $10K at a dealer in one year to keep mine on the road – I would never go back. I am now sticking with the German marques, as are most of my friends and family who have been repeatedly burned by these cars. They give European cars a bad name, which is now reflected in their own resale.I miss the days of the indestructible 505s, the Mi16s that cornered like a Lotus, 605s and ‘those supple seats’. They built some spectacular cars – notice the past-tense. While I will always stick with European cars I wouldn’t touch anything from PSA Peugeot-Citroen. You could not give me one!
Pauly

So im guessing the alliance with Mitsubishi has expired?
F1orce

I honestly don’t think there are any European manufactures which produce cars with the same I similar quality to Lexus.

Lexus are the benchmark of quality.
- Thomas
  
  One word. Tool!
  - Golfmother
    
    Correct, bench mark of bland boring tarted up toyota’s , they have lost the plot , range is dated and desperately needs a revamp .
    
    Works well in dumb a#s america but the rest of world laffs .
    - Daanyal
      
      Meanwhile, the “dumb a#s Americans” laugh at your spelling and grammar.
      - Golfmother
        
        DAANAL , thats right dumb , have a laff and lighten up .
      - Chris
        
        Golfmother, have a laugh and lighten up.
Luke Brinsmead

If things get worse, it might be better to merge. Shrinking euro industry as Korea and Japan, or should I say Thailand, continue to industrialise.
Sydlocal

I wonder if this will effect Ford’s partnership with PSA with their diesel engines? I guess PSA are hedging their bets any way they can (Ford, GM, BMW)!
Chevrons

Things are far from tough for PSA. Revenue has been off around 5% for the first half of 2012 and like many companies (and governments) they are looking at improving efficiencies and reducing expenses. PSA have even managed to achieve sales growth in Germany, which is pretty impressive given the competition in that market. For me, investing is about sustainable cash flow and you’ve only got to look at PSA’s numbers to see that it makes good sense to buy in. And no, I don’t work for Peugeot/Citroen, but I do own and drive the cars.