French car maker Peugeot and American GM have announced they will create a stronger alliance to produce cars mostly for the European market. The new deal is an extension of the agreement both companies had in place since last year. With the previous agreement Peugeot and GM were sharing some aspects of production while marketing vehicle with its own name and brands.
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The new agreement has the possibility of extent it to other markets outside Europe
The concept of sharing parts of production was first introduced by German automaker as a way to save production cost. With it companies share the production of parts like chassis.
GM CEO said that in the future the agreement can include Russia and South America a move that would help GM gain expertise on the manufacturing of small vehicles, an area where the French maker has focus for the past years.
The alliance will generate savings close to $2 billion and will introduce its first cars by 2016.
Related: 2014 Peugeot Onyx Hybrid Live at 2012 Paris Auto Show
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