PARIS (AP) PSA Peugeot Citroen warned Wednesday that its headline alliance with U.S. carmaker General Motors may produce smaller savings than originally forecast, even as it posted lower third quarter revenue.
Peugeot Citroen said it was putting a planned joint development of vehicle platforms with GM under review, and
that as a result, the $1 billion in savings that Peugeot Citroen had counted on from the alliance "may be readjusted downwards."
Europe's number two carmaker and the U.S. auto giant sealed their alliance last year, with GM taking a 7 percent stake in France's Peugeot Citroen, making it the second-largest shareholder behind the Peugeot family.
The two companies said the tie-up, with plans to share vehicle platforms and pool the purchasing of components and services, would save them a combined $2 billion a year within five years, split equally.
News of the alliance trouble came as Peugeot Citroen reported its revenue continued to fall in the third quarter due to shrinking European car markets and production disruptions by workers upset at a planned factory closure.
