Updated: October 24, 2012 7:30 AM | By AFP

Peugeot, GM agree projects to save $2.0 billion per year: PSA



French auto group PSA Peugeot Citroen and its US partner GM have picked four joint industrial projects for their strategic alliance, PSA revealed on Wednesday.

The overall target was to achieve annual savings of $2.0 billion (1.54 billion euros) within five years, which they would share under their partnership deal agreed earlier this year, the French firm said.

PSA, which has announced a radical restructuring plan and job cuts, has just received big guarantees from the French government to help its financial arm.

The two groups will build a compact monospace vehicle under the Opel/Vauxhall brands, owned by GM, and a compact crossover utility vehicle under the French Peugeot brand on the basis of the Peugeot 3008, the firm said in a statement.

The two companies will also work on a joint programme for a monospace vehicle in the segment for small cars under the Opel/Vauxhall and Citroen brands.

They will build together a modernised vehicle platform for small, low-emission cars.

These are to feature in a new generation of vehicles under the Opel/Vauxhall and Peugeot and Citroen brands in Europe and the rest of the world.

The fourth programme concerns joint work on another segment of cars for Opel/Vauxhall, Peugeot and Citroen.

PSA and GM said they expected to offer the first vehicles from these programmes by the end of 2016.

They would also create a joint operation to manage their procurement, PSA noted.

The intention was to complete the contracts for these projects by the end of December this year, the firm said.

© 2012 AFP

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