General Motors and PSA/Peugeot-Citroen confirmed they will jointly develop four vehicles as part of a wide-ranging cooperation pact put in place earlier this year.

The US and French car groups said in a press release that they would, together

  • build a compact class multi-purpose van for Opel and a compact-class crossover utility vehicle for the Peugeot brand.
  • develop a multi-purpose small car for Opel and Citroen.
  • share an upgraded low-CO2 small car platform for Opel and PSA's next generation of cars
  • start a joint program for mid-sized cars for Opel, Peugeot and Citroen.
The first vehicles to result from the cooperation will be launched in late 2016.

GM and PSA, which both are losing money in Europe, hope to achieve combined annual savings of 2 billion dlrs a year as a result of their alliance. Those savings , which will come in part from a joint purchasing organization, will be achievable "within five years," they said in the press release.