GM and PSA Peugeot Citroën create global alliance


Dan Akerson, GM Chairman and CEO with Philippe Varin, Chairman, PSA Peugeot Citroën

General Motors and PSA Peugeot Citroën have announced a long-term, global strategic alliance that will use the combined strengths and capabilities of the two companies to contribute to the profitability of both partners and improve their competitiveness in Europe.


The alliance is structured around two pillars. GM and PSA Peugeot Citroën will share vehicle platforms, components and modules. They will also jointly source commodities, components and other goods and services from suppliers – a combined annual buying capacity of around US$125 billion. Each company will continue to market and sell its vehicles independently and competitively. Outside of these pillars, the companies will pursue other areas of cooperation.

A tremendous opportunity

PSA Peugeot Citroën is expected to raise approximately €1 billion because of the alliance. This will be through a capital increase with preferential subscription rights for shareholders of PSA Peugeot Citroën, underwritten by a syndicate of banks and including an investment from the Peugeot Family Group as a sign of their confidence in the success of the alliance. As part of the agreement, which includes no specific provision regarding the governance of PSA Peugeot Citroën, GM plans to acquire seven per cent equity 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.”

Sharing selected platforms

Under the terms of the agreement, GM and PSA Peugeot Citroën will share selected vehicle-design platforms, modules and components worldwide. This will help them make cost savings, gain efficiencies, make the most of volumes and advanced technologies, and reduce emissions.


Initially, GM and PSA Peugeot Citroën will focus on small and medium-sized passenger cars, MPVs and crossovers. They'll also be looking at developing a new common platform for low-emission vehicles. The first vehicle on a common platform is expected to launch by 2016.


The alliance is also exploring areas for further cooperation, such as integrated logistics and transportation. GM hopes to establish a strategic, commercial cooperation with Gefco – an integrated logistics services company and subsidiary of PSA Peugeot Citroën – who would provide logistics services to GM in Europe and Russia

A valuable alliance

The total value of the alliance is estimated at approximately US$2 billion annually within about five years. This will largely coincide with new vehicle programmes, with limited benefit expected in the first two years. It is expected the benefits will be shared about evenly between the two companies.


The alliance will be supervised by a global steering committee that includes an equal number of senior leader representatives from both companies. Its implementation is subject to requisite regulatory approvals in certain jurisdictions as well as notification to the appropriate workers councils.