PSA Group indefinitely suspends its low-cost model

Although the strategic partnership between PSA Group and GM is moving forward, the French conglomerate has given not-so-positive signs in recent hours, announcing the suspension of development and production of the low-cost car that was being discussed at the end of last year.

The new strategy will now focus on expanding the collaboration with GM, in the search for new technologies and new models that will be the result of future joint work with GM. While this represents a step forward in the collaboration, it is bad news for those who expected the future model to be built in Spain, at the Villaverde plant.

At the same time, development of the seven-speed gearbox is suspended for seven months, which was to be included in various models from Peugeot and Citroën. This gearbox could be supplied by GM itself.

The development of the so-called low-cost car would be replaced by the joint development of models dedicated to the US market, plus a compact for emerging countries and a varied range of hybrid vehicles, which could include a city car.

Source | Automotive News