GM and Peugeot Citroën announce alliance General Motors and PSA Peugeot Citroën have announced they will share vehicle platforms under a new strategic alliance. To begin with the agreement will mean the companies will jointly invest in small and midsize passenger cars, MPVs and crossovers, as well as focusing on the sharing of components and modules. A common platform for low emissions vehicles is also being considered. In addition, the alliance will involve the creation of a global purchasing joint venture that will result in a combined annual purchasing power for commodities, components and other goods of $125billion. As part of the agreement, GM plans to acquire a seven per cent equity stake in PSA Peugeot Citroën, making it the second largest shareholder in the Peugeot family group. "This partnership brings tremendous opportunity for our two companies," said Dan Akerson, GM chairman and CEO. The alliance synergies in addition to our independent plans position GM for long-term sustainable profitability in Europe. Philippe Varin, chairman of the managing board of PSA Peugeot Citroën, said: "This alliance is a tremendously exciting moment for both groups and this partnership is rich in its development potential. With the strong support of our historical shareholder and the arrival of a new and prestigious shareholder, the whole group is mobilised to reap the full benefit of this agreement. Under the alliance, each company will continue to market and sell its cars on an independent and competitive basis, with the first product on a common platform expected to be on sale by 2016. The deal is expected to provide annual savings for the two companies of $2billion within five years, although little is expected in the first two years.