Let’s Dance! GM and PSA Group Partner Up

Let’s Dance! GM and PSA Group Partner Up:

Today’s announcement between General Motors and the PSA Group (maker of Peugeot and Citroen cars) is perhaps more significant in what it doesn’t say beyond the agreement to link-up to share platforms along with GM taking a 7-percent stake in the French group. Some observers have pointed out that it doesn’t do much initially to lessen overcapacity in Europe, where both PSA and GM’s German Opel unit are struggling. There are cost savings in platform sharing however, which should help some of the underlying problems. But in the larger picture, the alignment may mean that there is a gentleman’s agreement to keep North American hands off to the French. If the economy tanks further in Europe and the Euro is drastically devalued making exports to the U.S. attractive to the Peugeot and Citroen brands, it behooves GM to limit its competition in its home market. This agreement may be one way of doing that.

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Related posts:

1. PSA-GM Tie Up in the Offing?
2. New 3-Cylinder Engine from PSA
3. PSA and Mitsubishi Collaborate on New SUV

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