HispanicBusiness

General Motors tightened its ties with French automaker PSA Peugeot Citroen in a long-expected deal that will save the Detroit automaker about $2 billion over five years.

GM said today that it would coordinate development of four vehicle programs, including platform architecture and vehicle technologies, with Peugeot.

"All four projects will be developed combining the best platform architectures and technologies from the alliance partners," GM said in a statement.

The two companies also plan to combine their purchasing power in Europe in a bid to lower their production costs.

It's important because GM has lost more than $16 billion in Europe over the last 12 years, and investors have been pushing for more cost savings as European consumers conserve cash in the midst of a sovereign debt crisis. Peugeot has also been struggling with the European economic crisis.

The tighter relationship between GM and Peugeot is the latest step in an accord struck in February, when GM invested $400 million for 7% of the French company.

Today, GM said it would work together with Peugeot engineers to develop four new vehicle programs with the first finished products coming out at the end of 2016:

-- A compact-class multipurpose van for GM's European brands, Opel and Vauxhall, and a compact-class crossover for the Peugeot brand.

-- A multipurpose, small car for the Opel and Vauxhall brands and for the Citroen brand.

-- A low-carbon emissions small-car platform to underpin Opel and Vauxhall next-generation cars and PSA's next generation of cars.

-- A program for mid-size cars for Opel, Vauxhall, Peugeot and Citroen.