General Motors and PSA Peugeot Citroen CREATE a global strategic alliance
PSA Peugeot Citroen and General Motors today announced the creation of a global strategic alliance. Benefiting from the combined strengths and expertise of both companies, it will contribute to the profitability of both partners and will greatly enhance their competitiveness in Europe.
The Alliance is based on two main pillars: the sharing of vehicle platforms, components and modules and the creation of a joint venture to purchase on a global scale for products and services, with a volume purchase combines 125 billion. Both companies will continue to market its cars independently and competitively.
Beyond the Alliance lays the groundwork for future cooperations in other fields of activities.
As part of this Alliance, PSA Peugeot Citroen should proceed to a capital increase with preferential subscription rights of approximately € 1 billion which is the subject of a guarantee by a banking syndicate, which includes a group participation Peugeot family. And it testifies to his confidence in the success of the Alliance. As part of this agreement, which has no specific provision relating to the governance of PSA Peugeot Citroen, General Motors enters the capital of 7%, making it the second shareholder of PSA Peugeot Citroen behind the Peugeot family.
"This partnership is for both companies a great opportunity," stated Dan Akerson, CEO of General Motors. The synergies created by the Alliance, supplementing specific programs at each of the two companies, General Motors has let to ensure the long-term and sustainable way its profitability in Europe. ".
Philippe Varin, Chairman of the Management Board of PSA Peugeot Citroen, said: "This alliance is an exciting moment for our two key groups, thanks to a very rich partnership potentials. With the support of our historical shareholder and the entry of a new shareholder prestigious capital of PSA Peugeot Citroen, the entire company has mobilized to draw quickly, the full benefit of this Alliance. "
Under the terms of the agreement, PSA Peugeot Citroen and General Motors share some platforms, modules and components on a worldwide basis, so has to play a volume effect, has cut costs related to the development of new technologies and emission CO2, and gain efficiency. Sharing platforms allow both groups to not only develop applications globally, but also implement programs european scale at lower cost.
In the first stage, PSA Peugeot Citroen and General Motors will focus on specific vehicles small and medium-sized minivans and crossovers. Thereafter, the two partners also plan to jointly develop a new platform for vehicles with low CO2 emissions. The first vehicles from a common platform will be marketed from 2016.
This alliance enhances but does not replace performance plans drawn up by each group in Europe to restore profitability.
The agreement will enable PSA Peugeot Citroen has and General Motors to operate under the form of one and the same structure on a global scale purchase for their supply of raw materials, components and services from suppliers and beneficiant fully pooling their expertise, volumes, platforms and standard parts. The soundness of the process and the associated organizational structure of General Motors, the expertise of PSA Peugeot Citroen will significantly enhance the value and effectiveness of operations of purchase of the two societies.
Moreover, the Alliance is considering additional areas of cooperation, such as logistics and transport. To this end, General Motors intends to establish a strategic and commercial cooperation with Gefco, a subsidiary of PSA Peugeot Citroen, which would provide logistics in Europe and Russia.
The total expected synergies Alliance rises about two billion dollars per year within five years. These synergies are expected to largely correspond to renewal programs vehicles with a profit limit the first two years. They should go back to equality between the two companies.
The Alliance is headed by a committee that will include global management has parity, leaders of the two companies.
Agreements implementing the Alliance will be concluded after informing and consulting staff representative institutions.
The implementation of the Covenant is subject to the approval of certain competition authorities.
The capital increase will require the visa of the Autorité des marches financiers on the prospectus.
About General Motors
General Motors Co. (NYSE: GM, TSX: GMM) operating in 30 countries, General Motors and its partners have a leading position in the largest and most promising markets. The brand portfolio includes the General Motors Chevrolet and Cadillac brands, as well as Baojun, Buick, GMC, Holden, Isuzu, Daewoo, Jiefang, Opel, Vauxhall and Wuling.
For more information about the Group and its subsidiaries, including OnStar, a global leader in safety, security and information at http://www.gm.com
About PSA Peugeot Citroen
With two world-renowned brands, Peugeot and Citroen, the Group sold 3.5 million vehicles worldwide in 2011, of which 42% outside Europe. Second European automaker, he realized a turnover of € 59.9 billion in 2011. PSA Peugeot Citroen is present in 160 countries. The group spent in 2011 more than € 2 billion to research and development, particularly in the field of new energies. Its activities also include financing (Banque PSA Peugeot Citroen Finance), a logistics (Gefco) and automotive equipment (Faurecia).
