Currently reading: Geneva motor show 2012: GM, Peugeot alliance rumoured

GM Europe and PSA Peugeot Citroën are reported to be discussing an alliance in Europe

GM Europe and PSA Peugeot Citroën are reported to be discussing an alliance to develop and build cars. A report in the Financial Times suggests the two companies have been talking for several months about forging a European-based partnership.

With both companies announcing significant financial losses in Europe last week, a tie-up would be attractive, particularly in terms of research and development on future products.

According to the FT, the potential link-up would involve joint development and production of engines, transmission systems and vehicles.

Although there has been no official comment from either GM or Peugeot, France’s labour minister Xavier Bertrand confirmed earlier this week that Peugeot’s chief executive Philippe Varin had informed him of talks about a partnership with GM.

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