We so knew this was coming. It may be noted that Team Motoroids has been talking about GM and PSA going into an alliance since quite some time. Only yesterday, we reported howFrench labour minister recently confirmed the news of the two automakers looking to get into a JV. Now, quickly following this development, American giant General Motors and popular French automaker PSA Peugeot Citroen has announced their long-term and broad-scale global strategic alliance. Like we have been talking about, this alliance will make the most out of the strengths and capabilities of both the companies and hence, boost the profits.
Main objectives of the alliance:
• Sharing of vehicle platforms, components and modules
• 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.
The two manufacturers will continue to manufacture and market their vehicles independently. However, the companies did confirm that they are looking to focus on sharing small and midsize passenger cars and MPVs. The first vehicle from the common platform is expected to launch by 2016.GM and PSA target $2 billion in annual savings from alliance.“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.”
We so knew this was coming. It may be noted that Team Motoroids has been talking about GM and PSA going into an alliance since quite some time. Only yesterday, we reported howFrench labour minister recently confirmed the news of the two automakers looking to get into a JV. Now, quickly following this development, American giant General Motors and popular French automaker PSA Peugeot Citroen has announced their long-term and broad-scale global strategic alliance. Like we have been talking about, this alliance will make the most out of the strengths and capabilities of both the companies and hence, boost the profits.
Main objectives of the alliance:
• Sharing of vehicle platforms, components and modules
• 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.
The two manufacturers will continue to manufacture and market their vehicles independently. However, the companies did confirm that they are looking to focus on sharing small and midsize passenger cars and MPVs. The first vehicle from the common platform is expected to launch by 2016.GM and PSA target $2 billion in annual savings from alliance.“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 EU
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