Peugeot-Citroen and GM form strategic alliance

The General has joined forces with Peugeot-Citroen, announcing the start of a strategic alliance between the two. While GM has brought a seven per cent stake in Peugeot-Citroen, they will not include governance rights and the two companies will still be competing against each other in the European market. The purchasing cooperation defined in the agreement allows the companies to act as one global purchasing organization when it comes to sourcing commodities, components and services from suppliers, taking full advantage of the joint expertise, volume, platforms and standardized parts. GM will now be the second largest shareholder in PSA Peugeot Citroen after the Peugeot family group. The alliance will be supervised by a global steering committee that includes an equal number of senior leader representatives from both companies.

The alliance is structured around two main pillars: the sharing of vehicle platforms, components and modules and the creation of a global purchasing joint venture for the sourcing of commodities, components and other goods and services from suppliers with combined annual purchasing volumes of approximately $125 billion. The platform sharing, as of now, is limited to crossovers, MPVs and small/midsize passenger vehicles. The companies will also consider developing a new common platform for low emission vehicles with the first vehicle expected to be launched by 2016.


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By Team Overdrive