GM forms alliance with Peugeot to stem Europe losses
General Motors is forming an alliance with French carmaker Peugeot to help the company make progress in getting to a breakeven point in Europe.
GM made a record profit last year, but it was no thanks to Europe, where the company lost $700 million.
The limited alliance with Peugeot will involve the joint development of some car platforms and joint parts purchasing.
The companies estimate it will save a total $2 billion within a few years.
GM CEO Dan Akerson says the two companies will continue to compete in other areas.
"So we have our self-interest at heart and we have our joint interest at the center of it as well."
GM will gain a 7% stake in Peugeot.
Both companies will still have to separately deal with the biggest problem in the European car market. That’s too many workers and factories compared to demand.