GM-PSA drop plans to jointly develop large car, will go for small cars, engines

Article by Christian A., on December 23, 2012

Plans made by General Motors and PSA/Peugeot-Citroen for the joint development of a large car have been dropped, the two companies confirmed. Instead, they will broaden their partnership and will be developing a new generation of small gasoline engines. They have agreed to work on three vehicle platforms, with the first models to start selling in 2016, and to establish a purchasing joint venture in Europe as the first projects in their alliance.

These joint projects are: (1) a compact crossover for the Peugeot brand and a compact multipurpose vehicle for GM's Opel and Vauxhall marques; (2) a subcompact multipurpose vehicle that will be used by PSA and Opel/Vauxhall; (3) an improved low-CO2 subcompact-segment platform that will be used for Opel/Vauxhall's and PSA's next generation of cars in Europe and other regions.

According to the statement, the Opel/Vauxhall, Peugeot and Citroen models will be very distinctive and will be entirely consistent with the characteristics of the respective brands. The companies will jointly work on a next generation of high-performance, fuel-efficient small gasoline engines taken from PSA's EB global small gasoline engine program. Earlier this year, PSA presented the EB 1.0-liter and 1.2-liter three-cylinder engine range on the Peugeot 208 subcompact.

They will also be looking at product and industrial initiatives in Latin America or other emerging markets. They have already signed a definitive agreement to build a joint purchasing organization in Europe with the support of a purchasing joint venture. However, the agreement still has to get antitrust approval.

These moves broaden the global alliance that the companies entered earlier in 2012 as they both want to halt the excessive losses in the struggling and very competitive European new-car market. In a previous statement, it appeared that the alliance will concentrate on four joint vehicle programs (two small cars, a compact crossover and a bigger vehicle). But from the recent statement, it appears that just the two compacts and one subcompact had gotten the approval.

Topics: gm, psa, small car, engine

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