General Motors, Peugeot Citroen to Expand Alliance

The news that the alliance is being broadened contradicts recent press reports that the two companies were having difficulty getting their partnership on the rails. The two companies said that they will start work on developing common vehicle platforms for three small and medium-size cars, and other joint vehicle projects are being studied.

Peugeot Citroën and GM also said they have signed a definitive agreement to create a joint purchasing organization in Europe that was part of the initial alliance plan unveiled in February. However, this venture still must be approved by European antitrust authorities.

The two partners said that they are going to jointly develop the next generation of high-performance, efficient small gas engines derived from PSA’s global small petrol engine program. They will also explore product and industrial initiatives in Latin America or other growth markets.