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GM Buys Seven Percent Stake in PSA Peugeot Citroën

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GM and PSA Peugeot Citroën today announced the creation of a global strategic alliance that will leverage the combined strengths and capabilities of the two companies, which will improve the profitability of both partners and their competitiveness in Europe.

The alliance includes:
1. The sharing of vehicle platforms, components and modules.
2,. The creation of a global purchasing joint venture for the sourcing of commodities, components and other goods and services from suppliers with combined annual purchasing volumes of approximately $125 billion.

Each company will continue to market and sell its vehicles independently and on a competitive basis. Part of the agreement also sees GM acquiring a 7 percent equity stake in PSA Peugeot Citroën, making it the second-largest shareholder behind the Peugeot Family Group.

“This partnership brings tremendous opportunity for our two companies,” said Dan Akerson, GM chairman and CEO. “The alliance synergies, in addition to our independent plans, position GM for long-term sustainable profitability in Europe.”

Philippe Varin, chairman of the managing board of PSA Peugeot Citroën, declared, “This alliance is a tremendously exciting moment for both groups and this partnership is rich in its development potential. With the strong support of our historical shareholder and the arrival of a new and prestigious shareholder, the whole group is mobilized to reap the full benefit of this agreement.”

In the not too distant future GM and PSA Peugeot Citroën will share selected platforms, modules and components on a worldwide basis in order to achieve cost savings, gain efficiencies, leverage volumes and advanced technologies and reduce emissions. Initially the two automakers will focus on small and midsize passenger cars, MPVs and crossovers. A new common platform for low emission vehicles is also a possibility. The first vehicle on a common platform is expected to launch by 2016.