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GM and PSA Peugeot Citroën provide update on their global strategic alliance; new generation of 3-cylinder engines

24 January 2013

GM and PSA Peugeot Citroën provided an update on their global strategic alliance, announced in February 2012. (Earlier post.)

Steve Girsky, GM Vice Chairman, and Philippe Varin, Chairman of the PSA Peugeot Citroën Managing Board said that the final agreements concerning purchasing, logistics and the development of common vehicle projects were signed in line with the initially announced schedule. (Earlier post.) With respect to the joint product development programs, tasks and responsibilities have been “fairly and evenly” distributed:

  • The C-segment multi-purpose vehicle for Opel/Vauxhall, the C-segment crossover utility vehicle for the Peugeot brand and the B-segment multi-purpose vehicles for both carmakers will be developed on PSA Peugeot Citroën platforms.

  • GM will lead the development of B-segment multi-purpose vehicles for both Groups.

  • The updated B-segment platform for low emission vehicles, designed for the new generation of Opel/Vauxhall and PSA Peugeot Citroën cars in Europe and beyond, will be co-developed by both partners.

Both companies had also signed a definitive agreement related to Purchasing. All relevant regulatory approvals were received in the meantime and the joint purchasing organization (“JPO”) will become operational shortly.

In the transition phase leading up to the start-up of the JPO a GM executive will be appointed as an implementation executive in charge of putting the structures of the joint purchasing organization into place. After a maximum of one year the implementation Executive will be replaced by a Vice President Purchasing and a Deputy Vice President Purchasing—one from each company on a revolving basis.

GM and PSA Peugeot Citroën also confirmed their intention to develop new global projects to broaden their alliance and seize new opportunities. In this regard, they are exploring opportunities in growth markets including Latin America and Russia, which represent priority regions for both Groups.

In addition, the two Groups are aiming to develop jointly a new generation of small, fuel-efficient, high performance three-cylinder gasoline engines, derived from PSA Peugeot Citroën’s EB line of small gasoline engines.

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