Collaborative procurement with GM to save Peugeot Citroën €60 million

31 July 2013

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1 August 2013 | Adam Leach

PSA Peugeot Citroën expects to save €60 million (£52.3 million) by the end of 2013 through a joint-purchasing vehicle with competitor General Motors (GM).

The French manufacturer, which yesterday reported an operating loss of €510 million (£444 million) within its automotive division due to depressed European demand, has forecast it will save €60 million through a joint purchasing agreement with General Motors. The savings will be delivered through economies of scale on commodities, steel in particular, that both companies use in their operations.

In a statement to accompany the results, Phillipe Varin, chairman of the managing board at PSA Peugeot Citroën, said: “Our strategic alliance with General Motors is delivering its first results. We have to pursue our efforts to consolidate the industrial and commercial rebound of the group.”

The car and van maker has had a similar arrangement in place with BMW for a number of years. In 2011, the two companies struck a deal to joint-purchase components used in the manufacture of hybrid engines.

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