Following months of speculation and rumors about the specifics of the joint vehicle development aspect of the alliance between PSA Peugeot Citroen and General Motors announced in February of this year, the two automakers have finally gone on record in confirming concrete steps toward the implementation of their Global Strategic Alliance.
The biggest vehicle-related item stemming from the announcement is the alliance’s selection of four common vehicle projects to move to the next phase. These include:
- A joint program for a compact-class Multi-Purpose Van for Opel/Vauxhall and a compact-class Crossover Utility Vehicle for the Peugeot brand
- A joint Multi-Purpose Vehicle program for the small car segment for Opel/Vauxhall and the Citroen brand
- An upgraded low CO2 small car segment platform to feed Opel/Vauxhall’s and PSA’s next generation of cars in Europe and other regions
- A joint program for mid-size cars for Opel/Vauxhall and the Peugeot and Citroen brands
The four projects “will be developed combining the best platform architectures and technologies” from the alliance partners, with the first vehicles from the common programs planned for a late 2016 launch.
The alliance partners have also confirmed the next steps in their joint purchasing efforts, which will use the purchasing reach of both firms to achieve synergies benefitting both companies. The alliance warns that the “joint purchasing organization will be subject to customary antitrust approvals.”
Based on the efforts, including the joint vehicle programs and the joint purchasing endeavors, both automakers expect to see a $2 billion per year synergy target within a five-year timeframe.
Both organizations will now work to wrap up the definitive agreements associated with each of these programs while exploring other opportunities for cooperation.
Expect GM Authority’s full analysis of the vehicle development projects later today.