GM Splits Carmaking Duties with PSA

General Motors Co. plans to build the next-generation Citroen C5 midsize car for alliance partner PSA Peugeot Citroen, according to French press reports. In exchange, the media say, PSA will produce an unidentified compact car for GM's Opel brand.

German magazine Der Spiegel reports PSA also will make the next-generation Opel Zafira MPV. The reports did not say when or where specific models would be made.

The 10-member GM-PSA steering committee met for the first time on Wednesday in Detroit to discuss specific projects for the alliance.

When they announced the partnership in late February, the companies said they expected to share development and production of subcompact and midsize cars, MPVs and crossover vehicles. PSA said in March that the deal could expand to include large cars, minicars for emerging markets and dual-clutch transmission.

The partners have said they will develop at least four small and midsize platforms by 2016 for vehicles they will sell worldwide under their own brands. GM and PSA also intend to collaborate on purchasing. They predict their joint efforts will save each company €1 billion ($1.3 billion) per year.