General Motors and Peugeot-Citroen join forces
The grim automotive dystopia in which all the cars are made by one massive company is one step closer, because General Motors and PSA Peugeot-Citroen have just announced a global alliance.
'Global alliance' is a sinister sounding phrase used to add a sense of scale and grandeur to what is basically a cost-cutting measure. It doesn't mean Chevrolet or Vauxhall (both owned by GM) is planning a parallel 'lifestyle' sub-brand in the Citroen DS vein. Yet.
According to a joint statement, "the alliance is structured around two main pillars: the sharing of vehicle platform, components and modules; and the creation of a global purchasing joint venture for the sourcing of commodities, components and other goods and services front suppliers."
We can expect to see a few badge-engineered, cross-brand models hitting the shops in a few years' time. Think VW Sharan to SEAT Alhambra; of course, Peugeot-Citroen has already been involved in a threesome with Toyota, spawning the virtually identical C1, 107 and Aygo city cars.
The companies will concentrate on making city cars, small hatchbacks and crossovers at first, they say, with the first common vehicle platform expected by 2016.
GM has taken a seven percent share in PSA Peugeot-Citroen, instantly making it the second biggest shareholder in the company, behind the Peugeot family.
Philippe Varin, an important man at PSA Peugeot Citroën, said: "This alliance is a tremendously exciting moment for both groups and this partnership is rich in its development potential.
"With the strong support of our historical shareholder and the arrival of a new and prestigious shareholder, the whole group is mobilized to reap the full benefit of this agreement."