FRANKFURT Oct 1 General Motors unit Opel said on Tuesday it would build subcompact multi-purpose-vehicles (MPVs) together with French ally PSA Peugeot Citroen at Opel's Spanish plant in Zaragoza, confirming recent media reports.
"This programme is one of three joint projects that the partners agreed to in December 2012," Opel said in a statement.
It added that PSA will supply the vehicle architecture, as well as engines and transmissions, with the first models coming at the end of 2016.
Given the two carmakers had agreed to a 50-50 distribution of synergies, the decision implies that Opel will agree to building one of its own models in a plant operated by its French partner.
"The alliance between GM and PSA is based on a fair balance," Opel said in the statement, adding further announcements regarding joint projects would follow at a later date.
Media speculation has centred around the next generation of the Opel Zafira compact MPV due to launch in 2017, which could be built in PSA's Sochaux plant in France.
The news of the subcompact MPVs, which include the Opel Meriva and Citroen C3 Picasso, confirms a recent report in the French press.