FRANKFURT, Germany (AP) — General Motors and France’s PSA Peugeot Citroen say they’re forming an alliance to share car platforms and purchasing power.
As part of the alliance, GM intends to take a 7 percent stake in the French automaker. Peugeot intends to raise $1 billion (€0.74 billion)in new capital.
The two companies are seeking efficiencies that will make them more competitive in Europe’s car market.
GM’s European business lost €700 million there last year and the company has said it’s determined to turn it around.
