GM scales back its alliance with Peugeot
General Motors Co scaled back its alliance with Peugeot yesterday and put a brave face on yet another setback for its efforts to seek growth in Europe through collaboration and partnerships.
In a joint press release, the carmakers cancelled a joint vehicle project and said annual savings from sharing development costs on a raft of projects will now come to only $1.2bn (€0.87bn), rather than $2bn.
"The partners are now focused on execution of the alliance while remaining open to new opportunities," GM's executive vice president and Opel chief executive Karl-Thomas Neumann said.
In the early days of the alliance, Peugeot and GM unveiled plans for at least five vehicle and powertrain programmes.
But yesterday, PSA Peugeot Citroen and General Motors said they would stop joint development of a common vehicle platform and small petrol engine, once again reducing the scope of what was intended to be a broad-based alliance.
Work to develop a light commercial vehicle, a multi-purpose people carrier and a crossover SUV would continue, they said.
"Joint ventures always start with overly ambitious targets," ISI analyst Arndt Ellinghorst said, adding that he currently estimated joint savings for Peugeot and GM to amount to zero.