FRANCE: PSA may assemble GM cars after 2016 – Varin

According to Khabarkhodro,PSA Peugeot Citroen may eventually assemble General Motors cars at its factories after 2016 as part  the agreement reached between the two companies this week, Peugeot chief executive Philippe Varin was reported to have said on Friday (2 March).

According to Dow Jones Newswires, Varin said on French radio the automakers won't share production from the beginning but would initially share supply chains and research and development.

Eventually, Peugeot may end up assembling cars for GM but that would be only "on the horizon 2016-20," he said.

Varin said the overcapacity of car manufacturers was a severe problem for the auto industry and expects car sales in France to fall 10% in France this year and 5% in Europe.

More details of the alliance are expected next week.