GM puts its 7% stake in French automaker to work to cut costs and turn around business in Europe.
December 20, 2012
by The Canadian Press
PARIS—PSA Peugeot Citroen and General Motors (GM) have unveiled the first vehicles they will develop together as part of a joint venture intended to reduce costs and re-energize their businesses.
The French and American automakers said they plan to share development for three kinds of cars: a small family van, a small multi-purpose van and a low-emissions vehicle.
The two companies inked an alliance earlier this year that included GM taking a 7% stake in Peugeot. The cost-saving alliance is part of efforts to turn around their businesses in Europe.
Peugeot and Citroen are also looking at jointly building a high-performance, energy-efficient engine and to expand into Latin American markets.
The announcement comes less than a day after GM announced it was pulling production of its Chevrolet Camaro from its Oshawa, Ont. flex plant, moving it to the Lansing Grand River assemply facility in Michigan. The automaker cited lower capital investment needs and improved efficiencies as reason behind the move, much to the dismay of Canada’s auto production community, especially the Canadian Auto Workers (CAW).
©The Canadian Press