General Motors and PSA Peugeot Citroen announced their global alliance last year. They conducted a special press conference in Brussels recently to formally announce their nature of alliance and shared responsibilities for developing new products and entering new markets. The two parties signed the final agreements on 20th December 2012 which specified about purchases, logistics and development of common vehicles for both companies as well as entering new markets.
Both General Motors and PSA Peugeot Citroen have equally shared responsibility for joint development of vehicles for both the companies to take maximum advantage of their partnership using each company’s strong points. According to the agreement, C-segment MPV for Vauxhall/Opel, C-segment crossover utility vehicles for Peugeot and B-segment MPV for both parties will be developed on PSA Peugeot Citroen platforms. General Motors will lead development of B-segment MPV’s for both companies. An updated B-segment platform for low emission vehicles for new generation Vauxhall/Opel and PSA Peugeot Citroen cars will be jointly developed by both the companies.
General Motors and PSA Peugeot Citroen also have an agreement on joint purchasing and a Joint Purchasing Organization (JPO) will be set up to regulate all affairs. At the initial phase of this branch, it will be lead by an executive from General Motors and anytime before a year, the executive will be replaced by a Vice President and Deputy Vice President of Purchasing, each from each company on a revolving basis. General Motors and PSA Peugeot Citroen have also announced their entry into new markets with Russia and Latin America as the main priority. The two companies will also co-develop small, fuel-efficient, high performance 3-cylinder petrol engines from the PSA Peugeot Citroen EB line of small engines.