Rumorpile: Did GM China and Buick Water Down The GM-PSA Alliance?

William Maley

Staff Writer - CheersandGears.com

September 6, 2012

The General Motors, PSA alliance has hit a wall. According to German news magazine, Der Spiegel, one part of GM-PSA alliance has been taken out. The part dealt with GM sharing the Insignia platform with Citroën and Peugeot to build their next-generation midsize sedans.That would also allow Citroën and Peugeot vehicles to roll off the line at the Rüsselsheim plant, thus allowing the plant to use up all available capacity.

Why was this part taken out? Der Spiegel says Buick and GM China complained, stating the deal would cause the vehicles to compete too closely. Managers are also questioning the cooperation between the two companies.

"It would be premature to assume that anything had been agreed upon before and has now been reversed," the spokesman said to Reuters, adding that discussions were continuing with an emphasis on cooperation in purchasing, logistics and product development.

Source: Der Spiegel, Reuters

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.