GM has officially teamed up with PSA Peugeot Citro├źn In order to stop losing all the money they're earning in the rest of the world in Europe on Opel/Vauxhall. Or, to put it other terms, they've dumped their weirdo Swedish girlfriend and picked up a tiny underfed French woman to help raise a better family.

In an announcement on the GM investor website the company says they're planning to buy a 7% chunk of equity in PSA Peugeot Citro├źn, making them the second only to the Peugeot Family Group in ownership.

GM says there are two pillars around which the deal is built: platform sharing and purchasing. By merging their $125 billion in purchasing power they hope to keep supply costs down.

More importantly for enthusiasts, this means future global products for Peugeot built on GM platforms and vice-versa. This will be limited at first to small cars, midsize vehicles, and MPVs/Crossovers with the first joint-produced vehicle expected in 2016.

If we had money on it, we'd bet GM could finally land itself a good small Transit Connect-like van in the form of the next-gen Peugeot Partner/Berlingo and the French can pickup a new mid-size sedan based on the Insignia/Regal Epsilon replacement.

Advertisement

There's also this interesting tidbit:

The companies will also consider developing a new common platform for low emission vehicles.

Advertisement

The companies will reap an estimated $2 billion in savings by 2017.