As part of a plan to cut costs in Europe, U.S. car
manufacturer General Motors will transfer the majority of its
European logistics to a subsidiary of PSA Peugeot Citroen,
PSA announced Monday.
From January 2013 on, PSA subsidiary Gelco will handle European deliveries of components, finished vehicles and spare parts for most of GM's Opel/Vauxhall, Chevrolet and Cadillac ranges, Europe's second-largest carmaker after Volkswagen said.
"This agreement represents one of the largest logistics agreements in the European automotive industry to date. It allows GM to gain cost savings and focus its internal resources more on GM's core automotive business," PSA said.
The deal is a product of the global alliance announced by GM and the French carmaker in late February, which aims to save the two companies at least $2 billion a year within five years.
Both companies have suffered from a downturn in demand for new vehicles in Europe, caused in the main by the region's debt crisis.
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