Peugeot and Citroen last year unveiled facelifted versions of the 107 and C1 city cars. These two are built on the same assembly line as their sister model the Toyota Aygo. The cars are still relatively successful but they date back to 2005. In addition, the 1-liter engine emits more than 100 grams per km of CO2. The trend for turbocharged engines has also reduced average fuel consumption, though it will be tricky to keep the price down.
At the same time, GM will need to replace the Opel Agila, which is actually a 2008 Suzuki Splash. The same sort of challenges are faced by the Agila replacement, and GM has reportedly dropped plans to make a city car from the next generation Corsa platform.