By Andrew Ganz
Friday, May 11th, 2012 @ 9:48 am
 
The first concrete examples of General Motors' new alliance with French automaker PSA (Peugeot and Citroen) are beginning to emerge. A PSA factory chief says that the replacement for Citroen's C5 very well could be built at an Opel plant in Germany.

The move would mark the most visible agreement since GM and PSA signed an alliance earlier this year and it could help turn around both of the struggling European automakers.

Citroen's midsize C5 is a moderately strong-seller for the French automaker; last year, more than 180,000 were built at the automaker's Rennes, France, assembly plant, which is where factory chief Jean-Luc Perrard told Ouest France that the two automakers might swap production of more than a few models.

"[PSA] will get production models from General Motors in compensation under the alliance," Perrard said, indicating that the French automaker might wind up building a GM product or two.

An announcement could come as early as next week, the French paper reports, although Perrard indicated that a firm decision could be up to six months away.

PSA plans to invest around 40 million euros in Rennes, a plant that has seen its workforce cut in half over the last few years as PSA sales have tanked.