PSA Peugeot Citroen forms alliance with GM – platform sharing, joint purchasing and development on the cards
http://paultan.org/2012/03/01/psa-peuge ... the-cards/
PSA Peugeot Citroen and General Motors have formed an alliance. The move will see the US carmaker buy a 7% stake in PSA as part of a share issue by the French automaker. GM says it expects to spend from $400 million to $470 million on that.
“This partnership brings tremendous opportunity for our two companies. The alliance synergies, in addition to our independent plans, position GM for long-term sustainable profitability in Europe,” said GM CEO Dan Akerson. But “each company will continue to market and sell its vehicles independently and on a competitive basis,” the statement added.
The scope of the alliance includes 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 with combined annual volumes of approximately $125 billion. Bigger buyer gets better deals, as always.
There is also talk on joint development. GM and PSA said the alliance will at first focus on small and midsize vehicles, MPVs and crossovers. The carmakers may also develop a new common platform for low emission vehicles, with the first model expected to debut in 2016.
Cost savings from the deal will be limited in the first two years, but will eventually amount to $2 billion annually, split equally, the companies said. The deal is expected to close and take effect by the second half of this year.
GM is certainly not new in linking up with other companies. The US carmaker had shares in Suzuki Motor Corp, Isuzu Motors and Subaru maker Fuji Heavy Industries before disposing off the stakes few years ago. In the same period, but in Europe, GM had to pay Fiat to end an unsuccessful alliance. They also flirted with Renault-Nissan before. GM’s Opel brand is not doing well at all in Europe, and this move has it in mind.
On the other hand, Peugeot has a better track record with other carmakers, including JVs to build commercial vans with Fiat and an engine partnership with BMW. PSA also makes diesel powertrains with Ford and sells Mitsubishi models in Europe with its own face and badge.
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GM and PSA Peugeot-Citroen Officially Form an Alliance, Fiat Still Wants In
http://carscoop.blogspot.com/2012/02/gm ... ially.html
Well, that didn’t take long, did it? Only a week after the first report that General Motors and PSA Peugeot-Citroen were discussing a possible alliance in order to cut their costs and improve their performance in Europe and other regions, the two companies announced today that they have reached an agreement.
The global alliance between the world’s number one car manufacturer and Europe’s number two automotive group involves two main topics: the sharing of platforms, powertrains and modules, and a joint venture for the sourcing of US$125 billion worth of parts and services from suppliers.
GM will acquire a 7 percent stake in the French group, which is slightly higher than the 5 percent originally reported, but still enough to make it the second largest shareholder behind the Peugeot Family Group.
“This partnership brings tremendous opportunity for our two companies”, commented GM chairman and CEO Dan Akerson. “The alliance synergies, in addition to our independent plans, position GM for long-term sustainable profitability in Europe.”
Philippe Varin, chairman of the PSA Peugeot Citroen managing board, said: “This alliance is a tremendously exciting moment for both groups and this partnership is rich in its development potential.”
The agreement stipulates that the two groups will share select platforms, modules and components “on a worldwide basis” so as to achieve sizeable savings due to the economies of scale.
In fact, while they don’t expect significant cost savings in the first two years, the two automakers estimate that within five years, the equally-shared synergies will save them about US$2 billion annually.
The first models to be developed under the new agreement will be small and mid-size cars, MPVs and crossovers, with a common platform for a low-emission vehicle being under consideration. The first vehicle is expected to launch in 2016.
And that’s not all: Sergio Marchionne, CEO of the Fiat-Chrysler group, has had talks with both companies about possible tie-ups during the Detroit Motor Show and as reported by Detnews today, he's still interested in a collaboration with PSA Peugeot-Citroem
Now it seems that his company has been left out in the cold to face the hardships of the falling European market alone. Furthermore, the access to the U.S. and other markets, like China, where GM is dominant will now be available to the French and not the U.S-Italian group.
Marchionne is not one to give up so easily, though. And he already has a starting point: currently Fiat and Peugeot have a joint venture building light commercial vehicles. He can also count on the support of European leaders, such as German chancellor Angela Merkel, who want to deescalate the financial crisis that is storming the EU and ensure the future of the euro.
So, to sum it up: GM and PSA will form a global alliance, with the Americans relying on finding a way to save Opel and Vauxhall and the French on increasing their volumes, lowering costs and accessing new markets. Nevertheless, it may be not over yet, as Fiat still wants to play despite having a troubled history with GM…
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GM buys 7% stake in PSA Peugeot Citroen, creates global platform-sharing alliance
http://www.autoblog.com/2012/02/29/gm-b ... -platform/
General Motors has finally made a move to help its ailing European operations by tying its fortunes on the continent with those of PSA Peugeot Citroen. The two automakers have agreed to a new global alliance in which GM will buy a seven-percent stake in PSA, thereby making it the European automaker's second largest shareholder behind the Peugeot family itself. The shares won't give GM any governance rights over PSA, and the two companies will remain competitors in Europe.
What the alliance will give each company is the ability to share vehicle platforms, components and modules, as well as stronger purchasing power for sourcing components, raw materials and other goods and services. They're combined annual purchasing volume together will be approximately $125 billion. The vehicle platforms most likely to be shared will be small and midsize passenger cars, MPVs and crossovers, with the first one arriving by 2016.
GM says that synergies resulting from the alliance will save approximately $2 billion annually within about five years, though critics argue the alliance doesn't address the main problem plaguing automakers in Europe: overcapacity. While the alliance does give a shot in the arm to both Opel, GM's European subsidiary, and Peugeot, analysts and investors alike still believe that plant closings and consolidations are the remedy required for Europe's struggling automakers. Full details in the press blast after the jump.
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GM buys share in France’s PSA to create $125M global product alliance
http://www.leftlanenews.com/gm-buys-sha ... iance.html
General Motors will acquire a $125 million, 7 percent share in French automaker PSA Peugeot Citroen that will serve as the impetus for a wide-ranging alliance, the two automakers announced today in New York City. The move, the automakers say, is designed to help stem losses both are incurring as a result of increased competition and a costly labor market.
The fruits of the alliance will eventually be visible to consumers around 2016 in shared subcompact, midsize and crossover/SUV platforms that the two automakers estimate will save a combined $2 billion annually within five years. GM is likely to look to PSA primarily for its small car architecture, which would be most beneficial to its operations outside of North American. PSA, meanwhile, has long struggled to offer competitive midsize cars and crossovers, meaning it will likely look to use GM’s Epsilon II midsize and Theta crossover architecture.
While some rumors have suggested that GM’s decision to acquire a share in PSA could signal an eventual takeover, GM CEO Dan Akerson indicated otherwise.
“This is an alliance, not a merger,” Akerson told journalists earlier today in a teleconference.
GM’s European operations are in the midst of their own reorganization, which Akerson says will continue. GM has leaned heavily on its money-losing German Opel unit for product direction, but its new tie-up with PSA will likely bolster those efforts rather than negatively affect them.
PSA, meanwhile, which operates French automakers Peugeot and Citroen, has also struggled to keep pace against Asian and German rivals in Europe. PSA has remained uncompetitive against arch rival Renault, which has a strong alliance with Japan’s Nissan. The new alliance is not said to affect some powertrain and engineering partnerships PSA has forged with Ford and Toyota.
GM will also gain access to PSA’s Gefco logistics division, which it says will help it better serve its sales and parts network in Europe and Russia.
A committee with an equal number of senior-level executives from both GM and PSA will oversee the alliance. GM’s Akerson and his PSA counterpart, Philippe Varin (both are pictured above), will remain at the helm of their companies.