GM And PSA Purchasing Organization Can Start

2023 Author: Eric Donovan | [email protected]. Last modified: 2023-08-25 09:36

The joint purchasing organization of GM and PSA Peugeot Citroen can start work. In addition to common platforms, both companies want to be more prominent in the growth markets.

GM and PSA Peugeot Citroen can bring the planned joint purchasing organization to life. All relevant antitrust approvals have been obtained for the so-called Joint Purchasing Organization (JPO). This was announced on Thursday at the "Maison de l'Automobile" in Brussels, GM Vice-Chairman Steve Girsky and Philippe Varin, CEO of PSA Peugeot Citroën.

PSA and GM take turns in leadership

A GM manager will initially be in charge of the purchasing organization in order to set up the new organization and create structures and processes. After a year at the latest, a vice-president and a deputy vice-president are appointed to lead the organization - alternating between the two companies.

In addition to the purchasing organization, both companies want to expand the scope of the alliance and also work together in growth markets such as Russia and Latin America.

Opel's common platforms with Peugeot and Citroen

Another basis between Peugeot / Citroen and Opel / Vauxhall is the joint development and production of new platforms in the B and C segments as well as joint development with economical three-cylinder petrol engines. With the alliance, PSA and GM subsidiary Opel, both of which are heavily dependent on the currently weak European market, want to create new synergies and also increase the savings potential.

GM and PSA announced the strategic alliance eleven months ago and, based on the framework agreement, signed the contracts on December 20, 2012, which regulate the cooperation in the areas of purchasing, logistics and product development. (AG)