GM, PSA SCRAP LARGE CAR PROGRAM, MOVE FORWARD WITH SMALL ENGINE DEVELOPMENT

By Autoblog.com - The partnership between General Motors and PSA Peugeot-Citroen isn't expected to produce any results until 2016, but it has created plenty of news (and speculation) since it was formed back in February.  Now, GM is laying out some of the specifics of the deal while Automotive News Europe is reporting plans have been scrapped to produce a shared platform for a midsize sedan.

In "definitive agreements" between the two automakers, GM says that three new vehicle platforms are still on track; one of these will bring a new compact minivan to GM's Opel and Vauxhall brands and a compact crossover to Peugeot, and the other platform will be for B-segment minivans for both entities to share.  ANE says that the proposed shared platform for the Opel Insignia and Citroen was cancelled due to the lack of a sound business case.

In addition to cars, the joint venture will also be an opportunity for both automakers to develop "high-performance, efficient" gasoline engines and to create joint purchasing to allow both companies to potentially save money (this aspect of the agreement is still pending legal clearance from anti-trust approvals).

GM's official statement is posted below.

PSA Peugeot Citroen and General Motors Report Further Progress on their Global Strategic Alliance 

• Major Product Development and Purchasing agreements signed
• Expansion of scope to also include powertrain
• Strengthening ties and cementing the Alliance

DETROIT/PARIS -- PSA Peugeot Citroen (PSA) and General Motors (GM) today confirm the signature of major agreements in the execution of their Global Strategic Alliance.  Consistent with the terms of the Master Agreement dated February 29, 2012, the Alliance partners have signed definitive agreements related to three of the initial vehicle projects as well as to the purchasing joint venture.

Three Common Vehicle Platform Development Projects

The first common vehicle projects selected encompass platform / architecture developments in the following segments:

1. A joint program for a C-MPV1 for Opel/Vauxhall and a C-CUV2 for the Peugeot brand
2. A joint MPV3 program for the B-segment for both Groups
3. The co-development of an upgraded low CO2 B-segment platform to feed Opel/Vauxhall and PSA's next generation of cars in Europe and other regions

Additional joint vehicle projects to further strengthen the Alliance are under review and in due course will be subject to future announcements.

The first vehicles resulting from this cooperation are expected to be launched in 2016.  The Opel/Vauxhall, Peugeot and Citroen models will be highly differentiated and fully consistent with their respective brand characteristics.

Creation of Purchasing Joint Venture

The Alliance partners have signed a definitive agreement to create a joint purchasing organization in Europe supported by a purchasing joint venture.  This new organization will draw on the combined purchasing reach of both companies to realize purchasing synergies.  This is still subject to anti-trust approvals.

Further Global Initiatives

Based on the success of their collaboration, the partners also announce their intention for new additional global initiatives to broaden the scope of their Alliance and seize future opportunities; co-development of a next generation of high-performance, efficient small gas engines derived from PSA's global small petrol engine program (EB engine) and exploration of product and industrial initiatives in Latin America or other growth markets.

1. Multi-purpose vehicle for the C segment
2. Crossover utility vehicle for the C segment
3. Multi-purpose vehicle