GENEVA -- PSA/Peugeot-Citroen can offer General Motors Co. help with hybrid technology and developing smaller models while gaining GM's expertise in sport-utility vehicles as the manufacturers' alliance expands, PSA CEO Phillipe Varin said.
"In an alliance, every party has to bring something. We invest in hybrids," Varin said.
PSA sells the Peugeot 3008 crossover and Peugeot 508 midsized car in Europe with diesel-hybrid powertrains. The 508 diesel hybrid has CO2 emissions of 99 grams per kilometer and uses 3.8 liters per 100km (62 U.S. mpg).
Under the partnership, GM and PSA aim to begin sharing development of small cars and larger cars in the B (subcompact) and D (midsize) segments.
"It's clear where both parties' strengths are," Varin said on Wednesday at the Geneva auto show. "We can probably bring more on the B segment and GM can bring more on the D segment."
PSA and GM subcompacts include the Citroen C3, due for a replacement around 2016, and the Opel/Vauxhall Corsa. Their mid-sized offerings include the Opel Insignia, Peugeot 508 and Citroen C5.
For each of the first shared vehicles, to be introduced from 2016, Varin said the alliance would use one or other partner's existing platform, rather than develop a new one from scratch.
PSA's powertrain deals with Ford and BMW and joint manufacturing deals with Toyota and Fiat were not threatened by the GM alliance, Varin said. "These partnerships should continue and they will continue."
The alliance agreement calls for GM and PSA to have four products within the first four years that they are either manufacturing or have plans to go into production within the following 18 months.