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

The Nurburgring is the one track that many automakers want to hold a record of, because only the best of the best do. This time, a group of extraordinary passionate...
by - July 25, 2017
Would you like your convertible to be inspired by a yacht? Well, you do not have to imagine it anymore - thanks to the Bentley Continental GT Convertible and Mulliner...
by - July 25, 2017
The 2018 Jaguar E-Pace is the leaping cat’s first venture into the compact SUV segment, and sure enough, it didn’t take long before an artist rendered a wilder version of...
by - July 25, 2017
Good news for Audi EU5 and EU6 diesel car owners in Europe. They can now update their cars to fit six-cylinder or eight-cylinder TDI engines through a retrofit program, and...
by - July 25, 2017
Recently, Autocar revealed that a Ferrari SUV is on the way, after the company continuously denied that they will not build one. And unlike the usual crossover styling, Ferrari will...
by - July 25, 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