When it comes to emerging markets, General Motors will be leveraging its strategic alliances, rather than going solo, in an effort to become a more significant global entity.
When it comes to the Pan-Asian markets, it will be The General’s current Chinese partner, SAIC Motor Corporation. For other markets, like Russia and Latin America, GM and PSA Peugeot-Citroën will rely on each other to make an impact, according to a report from Reuters.
No timetable was given as to when the full extent of these plans would be realized, but when it comes GM’s partnership with PSA, the current understanding is to stabilize European operations first and foremost, before jointly entering other markets.
Comments
Please explain to me how GM is benefiting from this PSA alliance? Outside of Europe, GM is far ahead of PSA, so why allow PSA to piggyback on GM’s successes in the rest of the world? PSA’s earlier joint venture in China flopped, so now we help them do it right.
What happened to the next Corsa’s use of the Korean developed Gamma platform currently under the Sonic and Encore? Has that development all been written off? What GM platforms are PSA planning to use, or will the Opel engineers be sacrificed while GM pays for PSA platforms?
Please assure me that this alliance is not getting lopsided.
GM and PSA appear to be very redundant in Europe and South America.
It happens that GM and PSA’s main problem is also a common one, their money drain in the important but highly competitive and sagging European market.
Therefore they can tap on their Europe redundancies to significantly lower their costs. For example by cutting design and manufacturing costs with shared parts and plants building on economies of scale.. and if required closing less cost effective plants.
Speaking of emerging markets and I quote:
“GM, which first formed a manufacturing and sales joint venture with SAIC in 1997 to gain access to China, began signaling the importance of SAIC as a global partner in late 2009 when it announced the pair was forming a venture to produce and market their Chinese-made Wuling-branded micro vans as Chevy cars in India.”
I think I got this from autonews.com or autoweek.com
And I have to say talk about ruining brand image. Is this what Chevy stands for now? Badge engineered crap from china? GM haven’t you guys learned anything about brand image?
I have to agree with LouisF and HafeezH, the PSA venture seems very strange. And yes GM needs to be careful with its brand image no matter what market it is in; Aveo anyone…
Like GM, PSA has factories in Argentina and Brasil.
In 2010, the PSA-plant in Buenos Aires produced 129,373 vehicles and the group achieved a market share of 12.5%.
The PSA-plant in Porto Real, Rio de Janeiro (?) produced in 2011 a total of 138,370 vehicles and 219’000 engines.
All data from the PSA web site http://www.psa-peugeot-citroen.com/fr/carte-implantations
I think it could make sense for PSA and GM to join forces in South America. Maybe even by producing Opel branded cars locally instead of shipping them across the Atlantic Ocean (rumor goes that Opel is to open shop in Argentina this year).
Observer, thankyou for the insight this helps me understand the thinking better… Good stuff