The announcement on Wednesday this week that General Motors is to take a 7% stake in French carmaker PSA Peugeot-Citroën as part of cost saving exercise designed to help each carmaker’s struggling European operations will also mean that PSA’s logistics unit Gefco will now provide logistics for GM in Europe and Russia.
The alliance is structured around two main pillars: the sharing of vehicle platforms, components and modules; and the creation of a global purchasing joint venture for the sourcing of commodities, components and other goods and services from suppliers with combined annual purchasing volumes of approximately $125 billion. Each company will continue to market and sell its vehicles independently and on a competitive basis.
“This partnership brings tremendous opportunity for our two companies,” said Dan Akerson, GM chairman and CEO. “The alliance synergies, in addition to our independent plans, position GM for long-term sustainable profitability in Europe.”
Under the terms of the agreement, GM and PSA Peugeot Citroën will share selected platforms, modules and components on a worldwide basis in order to achieve cost savings, gain efficiencies and leverage volumes.
Additionally, the alliance is exploring areas for further cooperation, such as integrated logistics and transport and GM said it intends to establish a strategic, commercial cooperation with Gefco, whereby Gefco would provide logistics services to GM in Europe and Russia.
Further analysis of the logistics implications of the GM-PSA agreement will follow in next week’s Automotive Logistics News
Gefco-Minsheng venture to serve CAPSA
Meanwhile, Gefco has started a joint venture with China’s Minsheng Shipping, called Shenzhen Minsheng Gefco Logistics (SGML), for the fully dedicated provision of transport and logistics services to PSA Peugeot Citroën’s own joint venture in the country with Chang’an Automobile Group, called Chang’an PSA Automobile (CAPSA).
A spokesperson for Gefco told Automotive Logistics News that the new joint venture will support CAPSA in managing all logistics flows, both international and domestic, and will provide services including inbound and outbound logistics, in-plant supply chain management, spare-parts and freight-forwarding services.
The joint venture is expected to generate an annual turnover of more than RMB 700m (€87m) in five years.
CAPSA is the second Chinese joint venture PSA has formed with Chang’an Automobile Group in China’s rapidly growing automotive market. With operations in Shenzhen, the entity is initially focusing on introducing the Citroën DS line into China and will start producing Citroën DS5 from 2013 with a predicted annual production capacity of 200,000 vehicles and 200,000 engines.
Minsheng Shipping is a division of integrated logistics giant Minsheng Industrial Group, formed when the parent company set up its own joint venture with Shanghai International Port Group in 2009.
Prior to the latest partnership with Gefco, Minsheng Shipping has been providing logistics services to Chang’an in Chongqing and Nanjing.
Christophe Poitrineau, director of the Oriental Asia and India region for Gefco, has been appointed chairman of SMGL, while the chief executive of Minsheng Shipping, Zhao Yuhang, has been named vice chairman.
“Teaming up with Minsheng is a win-win strategy well integrating Gefco’s superior experience with industrial and automotive logistics, and Minsheng’s extensive resources in China market, [and will] optimise our offerings to CAPSA. The JV also signals that Gefco is stepping up its efforts to extend the Group’s presence in China, a strategic growth region for the Group.”
SMGL is Gefco’s fourth business entity in China since it began operations there in 2003 through its Gefco China, Gefco Hong Kong and Dongfeng Gefco divisions.
“Minsheng and Gefco have laid down a solid foundation for the cooperation during the two sides' collective work for CAPSA over the past year,” said Zhao Yuhang, general manager of Minsheng Shipping, “SMGL and CAPSA are jointly launching a series workshops at the moment aimed at best facilitating the collaboration in the shortest period of time.”