General Motors and PSA Peugeot Citroen have announced a strategic alliance.
The agreement will lead to the sharing of vehicle platforms, components and modules, and the creation of a global purchasing joint venture for the sourcing of commodities, components and other goods and services from suppliers.
The platform-sharing plans will initially focus on small and midsize passenger cars, MPVs and crossovers. The companies will also consider developing a new common platform for low-emission vehicles. The first vehicle on this platform is expected to launch by 2016. Each company will continue to market and sell its vehicles independently and on a competitive basis.
As part of the agreement, GM plans to acquire a seven percent equity stake in PSA Peugeot Citroen, making it the second-largest shareholder behind the Peugeot Family Group. However, GM will have no say in the running of the company.
The shares bought by GM are part of a larger number being offered for sale by PSA Peugeot Citroen, as it seeks to raise around $1 billion to fund investments. The company's market value based on its current share price is $3.6 billion.
In addition, the alliance is exploring areas for further co-operation, such as integrated logistics and transportation.
GM and PSA Peugeot Citroen estimate the alliance will provide joint savings for the companies of $2 billion annually within five years.