PSA to Handle GM Logistics in Europe

General Motors Co. has agreed to move most of its European logistics operations to PSA Peugeot Citroen's Gefco unit, starting next year.

Gefco will deliver materials and parts to GM's European plants, deliver finished vehicles to dealers and ship components to distribution centers. The agreement covers GM's Opel, Vauxhall, Cadillac and Chevrolet brands in the region.

The companies said in February that they planned to pool logistics efforts as part of their newly formed alliance. The partners estimate they can save $1 billion each per year by 2017 from shared purchasing, logistics, vehicle development and production.

Bloomberg News reported last month that PSA plans to divest at least 50% of Gefco to raise cash. The head of Gefco's works council told the news service that PSA had informed labor representatives about the sale.