Updated: December 20, 2012 4:20 AM | By The Associated Press, thecanadianpress.com

Peugeot, GM unveil joint-venture models

PARIS - PSA Peugeot Citroen and GM have unveiled the first vehicles they will develop together as part of a joint venture they hope will reduce costs and re-energize their businesses.

The French and American automakers said Thursday that they plan to share development for three kinds of cars: a small family van, a small multi-purpose van and a low-emissions vehicle.

The two companies inked an alliance earlier this year that included GM taking a 7 per cent stake in Peugeot. The cost-saving alliance is part of efforts to turn around their businesses in Europe.

Peugeot and Citroen are also looking at jointly building a high-performance, energy-efficient engine and expansion into Latin American markets. But they put on hold plans for a mid-size vehicle.

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