PSA/GM alliance "will work"

The Alliance between GM and PSA will not fail like the GM/Fiat one did, because it is an alliance of equals, according to one of PSA's top bosses.

"GM/Fiat was not balanced, it was too far weighted in favour of one party," PSA chief, Frederic St Geours told Autocar UK at the Geneva motor show.

St Geours added that the savings the deal will bring both GM and PSA were deliberately calculated at $1 billion apiece for that reason. "We are confident the fit with GM is good," he said.

Initially the Alliance will make savings in purchasing -- PSA's buying bill of $30 billion will be boosted to $125 billion by adding in GM's purchasing. Steel, one of the key commodities bought by a carmaker, will increase four-fold to 8 million tonnes.

Julian Rendell, Autocar UK