General Motors and PSA Peugeot Citroën inked a deal yesterday that will see the companies partnering to further their interests in Europe.
“This partnership brings tremendous opportunity for our two companies,” said Dan Akerson, GM chairman and CEO. “The alliance synergies, in addition to our independent plans, position GM for long-term sustainable profitability in Europe.”
The companies plan to share vehicle platforms, components and modules and to create a global purchasing joint venture that will improve both groups’ leverage in sourcing goods and services from suppliers by commanding $125 billion in purchasing power.
As part of the deal GM will acquire a seven percent stake in PSA Peugeot Citroën.
“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,” Philippe Varin, chairman of the managing board of PSA Peugeot Citroën said.
The alliance will initially focus on small and midsize cars, MPVs and crossovers, the first of which is expected to launch in 2016.