A General Motors plant in Germany may soon produce Peugeot and Citroën models, according to media reports and sources inside the German union. Last February, PSA Peugeot-Citroën and GM revealed that they are entering a global alliance. They plan to share platforms and component modules and form a global joint-venture. PSA disregarded these reports, referring to them as “speculation.” However, German newspaper Frankfurter Allgemeine Zeitung claimed to have viewed model plan proposals that would result in the next-generation Citroën DS5 being built at GM’s Rüsselsheim plant in 2015. This was followed by the next-gen Peugeot 508 in 2016.
The model plans indicate that the two French cars would share a platform with upcoming Insignia models. One of these is a model dubbed by GM planners as the “Country Tourer,” which is expected to compete with the Audi Allroad, says Autocar. From these reports, it can be concluded that the C5 will be replaced by the next DS5. The reports indicate that the Rüsselsheim plant will have a three-shift operation if it will produce the Insignia, 508 and DS5.
While the demand in Europe for Mondeo-segment vehicles continues to decline, being able to combine production at the Rüsselsheim factory up to 300,000 units annually should make these vehicles profitable. Due to the low volumes, it is uncertain whether the current Insignia, 508 and C5 are earning.