New details on the PSA Group joint venture with Opel

One of the latest cooperation agreements that has been in the works since the beginning of the year involves two of the brands or groups that have been going through serious financial difficulties for months. It concerns the PSA Group and Opel which are not aimed at a merger, but at a partnership to develop three models and to save costs close to 1,500 million euros per year.

Both groups will also focus on a new generation of small petrol engines, in addition to beginning the planning of new industrial initiatives in Latin America and other emerging markets.

Specifically, the models being planned could include a compact crossover for Peugeot and a multipurpose commercial vehicle for Opel and Vauxhall. The third project will involve some type of compact SUV, both for Opel and for Peugeot. The new generation of small, efficient petrol engines would appear in 2016 and would be for specific models of both brands, so they will not share any model that is created jointly.

Unfortunately, in order to reach the joint venture, both brands will have to reduce costs as a preliminary step. And this implies the dismissal of some 8,000 employees from both brands.

Source | Autogazette