PSA and General Motors strengthen strategic Alliance

PSA Peugeot Citroen and General Motors this month announced further steps in strategic Alliance, which focuses on joint programs of purchasing and logistics, focused on Europe, and extends into cross manufacturing. Cooperation extends to 2 products based on PSA platforms, B-MPV multi-purpose vehicle and C-CUV crossover-utility vehicle programs.

New gen products in the light commercial vehicle B-segment based on a PSA new generation platform are in the offing. The Alliance is expected to launch their first vehicle starting in 2016. The duo will balance manufacturing with each company producing one vehicle for the other. B-MPVs from both companies will be built in the GM España plant in Zaragoza. Future C-CUVs in the French PSA plant in Sochaux.

PSA and General Motors

GM and PSA will simplify joint governance of the Alliance and failure to achieve a minimum number of cooperation programs within a specific time will not lead to termination of their alliance. A waiver was issued in regards to GM’s right to terminate the Alliance under certain conditions in the event certain parties take a stake in PSA, in which case such parties would support the Alliance. GM would vote any PSA shares it would then hold in favor of any such transaction.

“The Alliance between PSA and GM is based on a balanced approach. The vehicles of both manufacturers will be highly differentiated and fully consistent with their respective brand characteristics,” said Karl-Thomas Neumann, GM executive vice president and president, Europe. “The partners are now focused on execution of the Alliance while remaining open to new opportunities.”

Said Philippe Varin, chairman of the managing board of PSA Peugeot Citroën “These announcements show that the Alliance continues to progress and is a key component of the Group’s turnaround plans in Europe.”