With the ongoing cost-reduction alliance between General Motor Co. and PSA/Peugeot-Citroen, PSA CEO Phillipe Varin suggests that the companies can also share technologies and expertise to further cut their operating cost. That might be the right thing, since GM won’t have to invest more to develop what PSA/Peugeot-Citroen has already developed, and vice-versa. "In an alliance, every party has to bring something,” Varin noted. True enough, PSA currently specializes in hybrids and small cars, as evidenced by the Peugeot 3008 crossover and 508 that both come with a diesel-hybrid engine. The 508 diesel hybrid boasts of having CO2 emissions of only 99 grams per kilometer and a fuel consumption rating of just 3.8 liters per 100km (62 US mpg). Under the partnership announced on Feb. 29, GM and PSA plan to commence sharing development of small cars and larger cars in the B (subcompact) and D (midsize) segments.
"We can probably bring more on the B segment and GM can bring more on the D segment," Varin said at the Geneva Auto Show, according to Autonews. Under the agreement, the alliance would use one or the other partner's existing platform, or underlying design and component set, instead of developing something from nothing, to produce each of the first shared vehicles, which would be introduced from 2016. GM and PSA currently offer the Opel/Vauxhall Corsa and Citroen C3 subcompacts and the Opel Insignia, Peugeot 508 and Citroen C5 mid-sized vehicles.
Varin gave assurances that PSA's existing engine agreements with Ford and BMW and joint manufacturing deals with Toyota and Fiat will not be affected by the GM alliance, Varin said. "These partnerships should continue and they will continue," assured Varin. The alliance agreement between GM and PSA involves producing four vehicles within the first four years.