GM Denies It Is Scaling Down PSA Alliance

General Motors Co. is retreating from plans to share its midsize car technology with partner PSA Peugeot Citroen, Germany's Der Spiegel reports without citing its sources. GM says no decision has been made.

When the carmakers formed their alliance in February, they said they expected to develop at least four small and midsize vehicle platforms by 2016.

The partners have been widely expected to share the midsize architecture that underpins the Opel Insignia with the Citroen C5 and Peugeot 508 cars. Previous news reports cited anonymous labor sources who asserted Opel would produce all three models at its main assembly plant in Russelsheim, Germany.

Der Spiegel says GM managers in China and the U.S., whose Buick Regal rides on the Insignia platform, oppose the plan for fear the French cars would compete with the Regal in global markets.

Opel declares that no product development decisions have been made yet, so any claim about previous or new plans is "entirely wrong," The company adds that manufacturing projects are not part of the existing alliance agreement.