Filed under: Europe, GM, Opel, Peugeot, Citroën
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General Motors finally made a move to help its ailing European operations by tying its fortunes on the continent with those of PSA Peugeot Citroen. The two automakers have agreed to a new global alliance in which GM will buy a seven-percent stake in PSA, thereby making it the European automaker’s second largest shareholder behind the Peugeot family itself. The shares won’t give GM any governance rights over PSA, and the two companies will remain competitors in Europe.
What the alliance will give each company is the ability to share vehicle platforms, components and modules, as well as stronger purchasing power for sourcing components, raw materials and other goods and services. They’re combined annual purchasing volume together will be approximately $125 billion. The vehicle platforms most likely to be shared will be small and midsize passenger cars, MPVs and crossovers, with the first one arriving by 2016.
GM says that synergies resulting from the alliance will save approximately $2 billion annually within about five years, though critics argue the alliance doesn’t address the main problem plaguing automakers in Europe: overcapacity. While the alliance does give a shot in the arm to both Opel, GM’s European subsidiary, and Peugeot, analysts and investors alike still believe that plant closings and consolidations are the remedy required for Europe’s struggling automakers. Full details in the press blast after the jump.Continue reading GM buys 7% stake in PSA Peugeot Citroen, creates global platform-sharing alliance
GM buys 7% stake in PSA Peugeot Citroen, creates global platform-sharing alliance originally appeared on Autoblog on Wed, 29 Feb 2012 12:29:00 EST. Please see our terms for use of feeds.
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