New York, New York – General Motors and PSA Peugeot Citroën have formed a long-term, broad-scale global strategic alliance. The companies said that the alliance will leverage the combined strengths and capabilities of the two, contribute to profitability, and strongly improve their competitiveness in Europe.

The alliance is structured around sharing vehicle platforms, components and modules, and creating a global purchasing joint venture to source commodities, components, and other goods and services from suppliers. Each company will continue to market and sell its vehicles independently and on a competitive basis.

GM plans to acquire a 7 per cent equity stake in PSA Peugeot Citroën, making it the second-largest shareholder behind the Peugeot Family Group. There are no specific provisions regarding governance of the European carmaker.

Initially, the companies intend to focus on small and midsize passenger cars, MPVs and crossovers. They will also consider developing a new common platform for low-emission vehicles. The first vehicle on a common platform is expected to launch by 2016.

The alliance will be supervised by a global steering committee that includes an equal  number of senior leader representatives from each company.

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