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PSA, GM May Build Small Cars Together in Brazil
Alliance partners PSA Peugeot Citroen and General Motors Co. are studying a plan to jointly produce small cars in Brazil, according to a French union official.
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Alliance partners PSA Peugeot Citroen and General Motors Co. are studying a plan to jointly produce small cars in Brazil, according to a French union official.
Bruno Lemerle, a senior official of the CGT union, tells reporters the companies want to share output of two new models for PSA and two for GM. He says Brazilian unions have approved the tentative plan.
No decision has been made on the production location, which could be an existing PSA or GM plant or a new facility, Lemerle says. He discloses that the partners also are moving ahead with plans to build future Citroen and Peugeot cars on the same platform as GM's Opel Insignia.
GM and PSA agreed in February to share purchasing, logistics and product development in a bid to save each of them $1 billion (€773 million) per year by 2017.
The companies say platform-sharing details are still under discussion. GM declared earlier this month that joint manufacturing projects are not part of the existing agreement.
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