GM and PSA Reveal More Details on Vehicle Co-Development

GMGMUnited 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 released more details about their vehicle co-development joint venture that they announced on December 20. In a deal quite different from most automotive joint ventures, each company will separately development its own platforms and then share them with the other. 

PSA will develop a platform that will underpin a C-segment OpelOpelGermany, 1863 > present85 models
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/VauxhallVauxhallUnited Kingdom, 1857 > present31 models
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MPV and a C-segment crossover for Peugeot.

GM will develop a B-segment MPV that will be used by both brands.

Both companies will co-develop a new B-segment platform for low emissions vehicles that will be shared by next generation Opel/Vauxhall and Peugeot-Citroën vehicles.

They also agreed to develop new global platforms that will most likely be used in South America and Russia, but these projects are still very early. 

Similarly, PSA and GM will create an updated version of PSA's three-cylinder petrol engines. This project is also quite early in progress, but it seems that GM wants to use an updated form of these engines in its own vehicles. 

In addition to developing cars together, GM and PSA are going to share logistics and parts purchasing to reduce costs. To create the joint purchasing organization, GM and PSA have already received regulatory approval to create a new organization that will be headed by a GM executive for one year. After that, the position will be replaced by a Vice President Purchasing and a Deputy Vice President Purchasing – one from each company on a revolving basis.

The alliance between GM and PSA gives both sides something they want. GM is desperate to cut costs of GM Europe to stop it from losing money. PSA is hoping to boost sales and gain money.