Staff Writer - CheersandGears.com
October 25, 2012
In a not surprising announcement yesterday, General Motors and PSA Peugeot-Citroen said they will be co-developing four new platforms that are part of the Global Strategic Alliance between the two. The platforms will primarily be for Opel/Vauxhall, Peugeot, and Citroën. Those four platforms are,
- A new low-emissions city car
- Midsize car (sedan, hatchback, and wagon)
- Small Multi-Purpose vehicle
- Joint program for compact MPV for Opel/Vauxhall and a compact CUV for Peugeot
GM and PSA say the launch of the first models of this joint venture will happen in 2016.
The two also announced the Global Strategic Alliance will establish a new joint purchasing operation, to help lower costs. This is currently on hold while two wait on antitrust regulatory approval. GM says the alliance could save about $2 billion in five years for the companies.
William Maley is a staff writer for Cheers & Gears. He can be reached at firstname.lastname@example.org or you can follow him on twitter at @realmudmonster.
Press Release is on Page 2
PSA Peugeot Citroën and General Motors Confirm Key Steps
in Global Strategic Alliance
Four common vehicle platform development projects
Next steps in joint purchasing organization
Synergy target of $2 billion annually confirmed
DETROIT/ PARIS/ RUSSELSHEIM – PSA Peugeot Citroen and General Motors today confirmed important steps toward the execution of their Global Strategic Alliance. Consistent with terms of the Master Agreement signed Feb. 29, the Alliance partners have selected four vehicle projects and confirmed the next steps in joint purchasing organization.
Four Common Vehicle Platform Development Projects
The four common vehicle projects selected to move to the next step encompass the following segment entries for both groups:
- A joint program for a compact-class Multi-Purpose Van for Opel/Vauxhall and a compact-class Crossover Utility Vehicle for the Peugeot brand.
- A joint Multi-Purpose Vehicle program for the small car segment for Opel/Vauxhall and the Citroen brand.
- An upgraded low CO2 small car segment platform to feed Opel/Vauxhall’s and PSA’s next generation of cars in Europe and other regions.
- A joint program for mid-size cars for Opel/Vauxhall and the Peugeot and Citroen brands.
The Alliance aims to launch the first vehicles on these common programs by the end of 2016.
All four projects will be developed combining the best platform architectures and technologies from the Alliance partners.
Next Steps in Joint Purchasing Organization
The Alliance partners also confirmed the next steps in their joint purchasing organization. This collaborative effort will draw on the combined purchasing reach of both companies to realize purchasing synergies benefitting both companies. The joint purchasing organization will be subject to customary antitrust approvals.
Based on the above programs and the joint purchasing organization, both companies confirm the previously stated synergy target of $2 billion annually achievable within five years.
With the common vehicle development projects and next steps in purchasing organization now confirmed, the teams will work to finalize the associated definitive agreements in addition to exploring other cooperation opportunities.