Sometimes teamwork can be a beautiful thing. A useful alliance between two equals can make both stronger and better than either is on its own.
That’s what General Motors (NYSE:GM) and France’s Peugeot (PINK:PEUGY) are hoping comes from expanding their planned alliance. The two firms, both of which have had their troubles over the last several years, will team up to produce new vehicles as soon as the 2016 model year.
The first new vehicles will released under GM’s Vauxhall and Opel brands. Initial designs include small vans for the two GM makes as well as a compact vehicle for Peugeot. Also in the mix is a low-emission car and later development of other small and compact cars and vans.
Earlier this year, the two forged an agreement two perform joint purchasing to save billions of dollars per year. Part of that agreement was GM’s purchase of 7% of Peugeot.