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"  Reports in today&amp;#039;s `Financial Times&amp;#039; predict that the French manufacturer of Peugeot and Citro\u00EBn cars, PSA, together with GM&amp;#039;s European brands, Opel and Vauxhall, will announce at next month&amp;#039;s 2012 Geneva Auto Show plans to jointly develop engines, transmissions and complete vehicles. Both companies are known to have been in discussion with potential partners to ease their manufacturing losses in Europe and staunch the flow of red ink: PSA reported a $658.5 million loss for the second half of 2011, while Opel/Vauxhall lost $747 million in 2011. It is known that Phillipe Varin, PSA&amp;#039;s chief executive, visited GM&amp;#039;s headquarters during last month&amp;#039;s 2012 Detroit Auto Show, but it&amp;#039;s likely that talks started prior to that. PSA- Peugeot Citro\u00EBn already has strategic alliances with BMW, Mitsubishi and Toyota and it&amp;#039;s long been rumoured that GM was in informal talks with other manufacturers for joint ventures to ease development and production costs for its European operation. Any deal brokered is unlikely to affect manufacturing facilities, both highly charged political and social issues in France and Germany, although this would limit the potential for cost savings as there is considerable over capacity in both countries. The four brands are suffering in Europe&amp;#039;s fierce price war, but are also seeing sales pinched in two directions: from premium manufacturers like Audi, BMW and Mercedes-Benz introducing cars into their traditional product sectors and from below by the Kia-Hyundai axis offering cars with more content at less cost. More:              Full Coverage: 2012 Geneva Auto Show &amp;amp;gt;&amp;amp;gt; Photos: 2012 Geneva Auto Show &amp;amp;gt;&amp;amp;gt; Related posts:  New 3-Cylinder Engine from PSA Let&amp;#039;s Dance! GM and PSA Group Partner Up PSA and Mitsubishi Collaborate on New SUV  "^^<http://www.w3.org/2001/XMLSchema#string>
<http://www.roadandtrack.com/car-shows/news/a21576/psa-gm-tie-up-in-the-offing-32351/>