GM, Peugeot reveal alliance plans
Automakers will make a small van and develop mid-size cars to boost European business.
FRANKFURT, Germany—General Motors is saying more about the kind of cars it will build as part of its alliance with France’s PSA Peugeot Citroen.
The companies said they’ll develop a joint program that will make a small van for GM’s Opel and Vauxhall brands and serve as the basis for a compact crossover vehicle for Peugeot.
They’ll also develop a new, low-emissions small car and work together on mid-size cars and small vans under both companies’ brands.
The two companies inked an alliance earlier this year that included GM taking a 7% stake in Peugeot. They said they would combine their purchasing and save $2 billion a year by 2017.
The cost-saving alliance is part of GM’s effort to make its European business profitable after years of losses.
©The Canadian Press