(MENAFN) PSA Peugeot Citroen and General Motors Corp announced that they have abandoned plans to mutually develop a large car, reported Reuters.
The two carmaker's alliance, announced earlier in the current year, planned at first to focus on 4 joint vehicle programs, including 2 small cars, a compact crossover and a larger car.
Nevertheless, at the current time, the alliance, with which the two firms had at first pledged to achieve annual savings of USD2 billion within 5 years, will focus only on the 3 compact vehicles.
The alliance will explore product and industrial initiatives in Latin America or other growth markets to offset deep losses in European markets.
It is worth noting that the alliance includes also a joint purchasing deal.
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