Well, that didn’t take long, did it? Only a week after the first report that General Motors and PSA Peugeot-Citroen were discussing a possible alliance in order to cut their costs and improve their performance in Europe and other regions, the two companies announced today that they have reached an agreement.
The global alliance between the world’s number one car manufacturer and Europe’s number two automotive group involves two main topics: the sharing of platforms, powertrains and modules, and a joint venture for the sourcing of US$125 billion worth of parts and services from suppliers.
GM will acquire a 7 percent stake in the French group, which is slightly higher than the 5 percent originally reported, but still enough to make it the second largest shareholder behind the Peugeot Family Group.
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