GM ties up with Peugeot
PSA Peugeot Citroen and General Motors have officially announced a planned collaboration. This joint alliance will escort to sharing of components, vehicle platforms, modules and formation of international purchasing collaboration for the selling of components, commodities and other types of goods and services from the suppliers. Initially, the plan for platform sharing will focus on mid size and small passenger cars, crossovers and MPVs. Both the firms will consider developing a brand new common platform for the low CO2 emission vehicles as well. Apparently, the first low emission vehicles from this platform could be expected in 2016. Both, PSA Peugeot-Citroen and General Motors will carry on selling its cars in the market independently that too on a competitive origin.
As a part of joint venture, General Motors is planning to obtain a good 7% equity stake in Peugeot-Citroen, which will make GM the 2nd largest shareholder in the PSA Peugeot Family Group. However, on the other hand, sadly, General Motors will not have any say in the running approach of PSA Peugeot-Citroen. The shares that have been bought by General Motors are basically an element of larger number that is being proffered for sale by Peugeot. Furthermore, this collaboration is also discovering areas for more co-operations, like transportation and integrated logistics. PSA Peugeot Citroen and General Motors have estimated this collaboration and came out with a figure of $2 billion per year within five years of joint saving for both the companies.