US carmaker General Motors is planning to build mid-sized vehicles for the French automobile manufacturer PSA Peugeot Citroen, while the PSA will assemble a compact model for GM's Opel brand.
The current plans will facilitate GM to build a replacement model for the PSA Citroen C5 sedan, while, PSA will assemble GM's next Opel Zafira compact minivan.
Opel chief executive Karl-Friedrich Stracke said, "No jobs will be lost in the Opel technical development center, however joint projects are divvied up."
Peugeot said that the core of the alliance plan would evolve in developing the future Peugeot mid-sized cars based on GM's platforms, and smaller GM models based on Peugeot models.
The two automotive groups are expected to launch a raft of new models on shared platforms from 2016.
GM has reported $8.3bn of profits globally in 2011 while its European operations reported $700m loss.
