Peugeot

Auto/Economy
4:17 pm
Wed February 29, 2012

GM forms alliance with Peugeot to stem Europe losses

GM CEO Dan Akerson and PSA Peugeot Citroen Chairman of the Managing Board Phillipe Varin
GM

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.

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