GM and PSA Agree to Develop New MPV and Crossover in Europe

General MotorsGMUnited States of America, 1998 > present8 models
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and PSA PeugeotPeugeotFrance, 1882 > present120 models
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-CitroënCitroënFrance, 1919 > present94 models
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have updated their plans for partnership and are now working on a shared B-segment MPV, a C-segment crossover and B-segment light commercial vehicle for Europe. All of them will use shared platforms, parts and manufacturing. However, they are dropping plans to create a shared B-segment platform and small petrol engine.

“The Alliance between PSA and GM is based on a balanced approach. The vehicles of both manufacturers will be highly differentiated and fully consistent with their respective brand characteristics,” said Karl-Thomas Neumann, GM’s head of Europe.

All three vehicles will use PSA platforms but also be offered by GM in Europe. The first of them are expected to be on sale in 2016.

Each company will produce one car for the other. GM will build the MPV at its factory in Zaragoza, Spain, and the crossover will be built by PSA in Sochaux, France.

The two companies believe that the partnership will save them a combined $1.2 billion by 2018.

In another step of PSA’s ongoing rumored stock sale to Dongfeng, GM agreed to vote in favor if “certain parties take a stake in PSA,” according to the announcement.