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PSA and GM Scrap Plans for Large Sedan - Will Work on Small Petrol Engines

GM PSA Alliance 1 photo
Photo: GM/PSA
The initial plan, when GM and PSA got together and decided to collaborate, was to jointly-develop the next Citroen C5 and a replacement for the Opel Insignia, which would ultimately end up being built in the same factory, in Germany.
Now, though, the two groups have announced that they are dropping all plans to make a large sedan, and will now concentrate on the development of small capacity petrol engines, based on Peugeot’s already released EB series, which currently includes a 1.0-liter unit and a 1.2-liter unit, both with three cylinders, and both available under the bonnet of the all-new Peugeot 208.

They will also jointly develop a compact crossover for Peugeot, as well as a compact multipurpose vehicle for Opel and Vauxhall. Another common project will be a subcompact vehicle for both PSA and Opel (and Vauxhall) - most likely a replacement for the aging 107 and C1.

Furthermore, they will explore additional alternatives for the South American market, which still has a lot of untapped potential, especially in fast-growing economies, such as that of Brazil.

Story via autonews.com
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