By Drew Johnson
Thursday, Dec 20th, 2012 @ 5:31 pm

General Motors has canceled plans to develop mid-size vehicles with corporate partner PSA/Peugeot-Citroen. The two sides will instead focus their joint-efforts on smaller vehicle segments.

Although mid-size cars like the Opel Insignia and Citroen C5 are off the table, GM and PSA will jointly develop a new compact platform that will underpin several C- and B-segment vehicles. Those future cars will include a C-segment MPV for Opel/Vauxhall, a C-Segment crossover for Peugeot and a B-segment multi-purpose vehicle for both brands.

The jointly-developed Opel/Vauxhall and Peugeot/Citroen vehicles, which the automakers promise "will be highly differentiated and fully consistent with their respective brand characteristics", will launch in 2016.

In addition to small cars, GM and PSA will also work together on a "next generation of high-performance, efficient small gas engines." However, no time frame was given for that project.

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