PSA Peugeot Citroen global alliance with General Motors and what it means for Indian auto market
Earlier this year, General Motors and PSA Peugeot Citroen announced their decision to form an alliance and share vehicle platforms under this new treaty. This…
The first vehicle produced via this common platform is expected to hit markets by 2016. Sales of PSA Peugeot Citroen have been poor in European markets. The company has faced poor sales and difficulties with cash flows making growth close to impossible. Likewise General Motors too have faced losses due to poor sales of their European brand Opel. Both companies are eager to improve their standing in European markets and hence this alliance will act as a prop to help both companies regain their market position.
Peugeot has no presence in the Indian auto sector despite earlier attempts. Now, the company has invested $813 million in India while plans are under process to set up a manufacturing unit in Gujarat. The company had to withdraw investments following incumbent Euro crisis and have since partnered with GM for further reach in the country. Peugeot has recently expressed their intention to use GM plants to ensure return into Indian markets. GM has a new line up for release and has stated that they do not have excess capacity for Peugeot. It will have to be seen how this alliance will benefit both companies in the future.