GM and PSA Peugeot Citroen Announce Logistics Agreement to Improve Operational Efficiency and Save Costs

2012-07-02

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  • First result of global strategic alliance
  • Opel/Vauxhall, Chevrolet & Cadillac Europe Logistics Activities to be Transferred to Gefco

Detroit / Paris / Rüsselsheim - As a first result of its global alliance, GM and PSA Peugeot Citroen have reached a long-term, exclusive agreement to transfer the majority of GM’s logistics business in Europe to Gefco, a wholly-owned subsidiary of PSA Peugeot Citroen and established leader in automotive and industrial logistics in Europe and beyond.

The agreement will impact the majority of the Opel/Vauxhall, Chevrolet and Cadillac logistics activities in Europe (including Russia) and includes services such as material and component deliveries to manufacturing plants, delivery of finished vehicles to dealerships and the transport of aftersales spare parts to distribution centers.

This agreement represents one of the largest logistics agreements in the European automotive industry to date. It allows GM to gain cost savings and focus its internal resources more on GM’s core automotive business.

Steve Girsky, GM Vice Chairman, said: “This marks the first step in realizing benefits from the larger Alliance with PSA. This logistics agreement will bring operational efficiency and costs savings to GM and allow us to fully utilize the proven expertise of Gefco”

Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroen, added: “This agreement is the first step in our long term strategic alliance with GM. It enables Gefco to continue its strategy of broadening its existing client base and growing its global business operations.”

The new logistics agreement between GM and Gefco will take effect in 2013.

On February 29, GM and PSA Peugeot Citroen announced a broad-scale global strategic alliance that will leverage the combined strengths and capabilities of the two companies, contribute to the profitability of both partners and strongly improve their competitiveness in Europe.

About General Motors

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets.  GM’s brands include Chevrolet and Cadillac, as well as Baojun, Buick, GMC, Holden, Isuzu, Daewoo, Jiefang, Opel, Vauxhall and Wuling. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at  http://www.gm.com.

About Peugeot Citroën

PSA Peugeot Citroën. With its two world-renowned brands, Peugeot and Citroën, the Group sold 3.5 million vehicles worldwide in 2011, out of which 42% outside Europe. As Europe’s second largest carmaker, it recorded sales and revenue of more than €59.9 billion in 2011. PSA Peugeot Citroën has sales offices in 160 countries. In 2011, the Group dedicated more than €2 billion to research and development, especially in new energies. Its activities also are involved in financing activities (Banque PSA Peugeot Citroën Finance), logistics (Gefco) and automotive equipment (Faurecia). Presentation related to announcement can be found at http://www.psa-peugeot-citroen.com

About the Gefco Group

GEFCO sets the standard in logistics for industry. Through its six key areas of expertise – Logistics, Gefboxsystem, Overseas, Overland, Vehicle Distribution and Customs and Tax Representation – GEFCO delivers global, innovative solutions in both domestic and international and inbound and outbound logistics for a full range of industrial requirements. Present in some 150 countries, GEFCO ranks among Europe's top ten logistics groups, with turnover of €3.8 billion in 2011. The group has a workforce of 10,300 following the integration of Gruppo Mercurio. With over 300 business locations worldwide, GEFCO is developing its activities in Central Asia, Central and Eastern Europe, Asia, the Middle East, Eastern Asia and South America.
Website: www.gefco.net


GM Forward-Looking Statements: In this press release and in related comments by GM management, our use of the words “expect,” “anticipate,” “possible,” “potential,” “target,” “believe,” “commit,” “intend,” “continue,” “may,” “would,” “could,” “should,” “project,” “projected,” “positioned” or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to realize production efficiencies and to achieve reductions in costs as a result of our restructuring initiatives and labor modifications; our ability to maintain quality control over our vehicles and avoid material vehicle recalls; our ability to maintain adequate financing sources, including as required to fund our planned significant investment in new technology; the ability of our suppliers to timely deliver parts, components and systems; our ability to realize successful vehicle applications of new technology; and our ability to continue to attract new customers, particularly for our new products. GM's most recent annual report on Form 10-K provides information about these and other factors, which we may revise or supplement in future reports to the SEC.

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