The two firms will also collaborate on further improvements to PSA Peugeot Citroen's EB three-cylinder petrol engine used in the 208, and have signed a definitive deal for joint purchasing that should bring better economies of scale for PSA and GM brands.
Friday, January 25, 2013
Auto Alliance Cost Svaings
Economies of scope in products are often the result of economies of scale in producing a common component. Case in point is the alliance between GM and PSA Peugeot Citeroen. They will be collaborating on a number of models. Some models marketed by both will based on a platform developed by one.