Thursday, February 23, 2012
By Manoj Kumawat
Peugeot inks deal with GM in Europe, search for strategic partner in India still on
The American General Motors and French car maker Peugeot-Citroen are expected to enter into an alliance in Europe. The tie up is seen to be strategically more important for the French car maker as with it, it can extend its presence in America and China besides fighting the difficult conditions prevailing in its homeland Europe. In India Peugeot is about to make a reentry with its Peugeot 508 sedan and Peugeot 208 hatchback.
At the 2012 Auto Expo held in New Delhi in January, the French car maker has unveiled the Peugeot 508 and Peugeot 908HDi. The shake hand with GM is also expected to smoothen its reentry in India.
With almost all the major car makers sailing in the troubled waters of Europe presently, it is quite obvious that such alliances will in place with other car makers as well. In addition to the present move, Peugeot has also set forth many other measures to keep its presence and profits intact in its homeland. Where there is a job cut planned, Peugeot has already pulled its hands off the 2012 World Endurance Championship. Recently, there were reports that the company has shut down its Mumbai office in India. Equally there were reports that the company is going slow on its Gujarat plant. Besides, the company is also seeking a possible alliance in India so that it can reduce risks and can also put a check on its investments being a single player.
The alliance is expected to revive the Opel and Vauxhall brands of GM in Europe. In addition to the partnership with GM, Peugeot also has ties with BMW for the supply of petrol engines and Mitsubishi for the supply of electric vehicles. Both the alliance are going good and helping the French car maker to maintain its presence in Europe.