Detroit - "For us, this alliance brings benefits that are stable in the long run," said GM CEO, Dan Akerson, as quoted by Autonews, Thursday, March 1, 2012.
Two days ago, GM announced a 7 percent stake in Peugeot's takeover of U.S. $ 470 million. Not just a normal acquisition, both companies will collaborate in the production of the basic model (platform), vehicle components and modules, and design scheme of purchase of raw materials and capital goods worth U.S. $ 125 billion.
"But both companies will sell their products and compete in the free market," said a statement issued by GM and Peugeot.
Cooperation will be sharing the platform at GM and Peugeot MPV and a crossover model that they make. In addition both designing energy-efficient vehicles which will be launched in 2016. This business partnership became effective in mid-2012.
However, analysts said the cooperation is not very favorable considering the sale of Peugeot and GM was not too big in Europe. "The alliance of this kind is not suitable for the massive European market," said Credit Suisse analyst, Erich Hauser.
While Giggenheim Securities analyst, Matthew Stover argues that Peugeot would only benefit from the increased production. "Peugeot need a GM, but GM did not need Peugeot," he said.
This strategic alliance forged GM lapse two years after the company's rise from bankruptcy. Ahead of the collapse, in 2005 and 2006, GM sold its stake in Suzuki Motor Corp., Isuzu Motors and Fuji Heavy Industries. GM also forge a merger with its competitors in the American market, Chrysler, and Ford Motor Co.
PSA Peugeot Citroen and General Motors (GM) would reap huge profits after establishing joint venture. Two of the world's car manufacturers could save an estimated operating cost up to U.S. $ 2 billion over the next five years.
