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1 August 2013 | Adam Leach
PSA Peugeot Citroën expects to save â‚¬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 â‚¬510 million (£444 million) within its automotive division due to depressed European demand, has forecast it will save â‚¬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 CitroÃ«n, 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.