GM-PSA alliance aims to achieve $2 billion in annual savings within five years

Article by Christian A., on March 2, 2012

An alliance has been reached between PSA/Peugeot-Citroen and General Motors that aims to achieve $2 billion in annual savings within five years. In a statement, GM CEO Dan Akerson said that this deal offers plenty of opportunity for its two companies. He added that GM’s independent plans as well as this alliance would put GM on track to achieve long-term sustainable profitability in Europe.

PSA CEO Philippe Varin said that this partnership is “rich in its development potential” as the entire group has been tasked to fully benefit from this deal.

GM will get a 7% Peugeot stake while the two firms will share research and development as well as vehicle platforms and technologies. The deal was announced just as the European markets had closed.

A statement was released by the two companies about how they will share vehicle platforms, components and modules and the creation of a global purchasing joint venture for the sourcing of commodities, parts and other goods and services from suppliers with combined annual purchasing volumes of around $125 billion.

In a statement, it was revealed that PSA’s and GM’s respective marketing divisions will be independent of each other. Many analysts and investors have criticized this deal, which is entered while PSA and GM's Opel unit face the challenges of sluggish sales and overcapacity in Europe. Credit Suisse analyst Erich Hauser sent a note to investors, saying that this isn’t the kind of solution that’s needed in the European mass market.

Topics: gm, psa, partnership

If you liked the article, share on:

Comments

Recommended

Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
The largest gathering of Volkswagen and Audi cars in Europe is underway, and the German premium carmaker is displaying the third model of its G-Tron range at the 2017 Worthersee...
by - May 26, 2017
Have you been wondering how much you have to produce to acquire a 2018 Mercedes-Benz S-Class Facelift? Wonder no more, as Mercedes-Benz has already divulged the pricing – at least...
by - May 26, 2017
Following the M3’s new facelift earlier this year, BMW is once again bringing something fresh to the table. In its newest offering, a cheaper version of the high performance sedan...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries