PSA/Peugeot-Citroen wants to work with General Motors in the very competitive South American markets to cut its reliance on Europe, Peugeot brand boss Maxine Picat told the Financial Times. He remarked that GM already has a “good scale” in South America. Picat, however, ruled out working with GM in the Indian market, where the American carmaker operates two sites and where the French company terminated plans for a vehicle plant, since they have decided to focus on China, South America and Russia.
Picat told the Financial Times that these regions are PSA’s key targets outside Europe. GM posted around 1 million in vehicle sales in South America in 2012, or fourfold that PSA sold in the region, the Financial Times said.
The report said PSA is behind Fiat, Volkswagen and Ford in key markets such as Brazil. GM acquired a 7-percent stake in PSA as part of a partnership announced in 2012 to share development of new models and carry out joint purchasing. [source: automotive news - sub. required]