By David Pearson
PARIS--PSA Peugeot Citroen (UG.FR) and General Motors Co (GM)
said Thursday they are expanding their 10-month-old alliance and
they are looking at potential product and industrial projects in
Latin America.
The news that the alliance is being broadened contradicts recent
press reports that the two companies were having difficulty getting
their partnership on the rails.
The two companies said in a statement that they will start work
on developing common vehicle platforms for three small and
medium-sized cars, and other joint vehicle projects are being
studied.
Peugeot Citroen and GM also said they have signed a definitive
agreement to create a joint purchasing organization in Europe that
was part of the initial alliance plan unveiled in February.
However, this venture still must be approved by European anti-trust
authorities.
The two partners said in their joint statement that they will
jointly develop a next generation of high-performance, efficient
small gas engines derived from PSA's global small petrol engine
program. They will also explore product and industrial initiatives
in Latin America or other growth markets.
Write to David Pearson at david.pearson@dowjones.com
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