FRANKFURT -(Dow Jones)- Auto-parts supplier Continental AG (CON.XE) sees additional business opportunities stemming from the alliance of General Motors Co. (GM) and French auto maker PSA Peugeot Citroen (PEUGY, UG.FR), Chief Executive Elmar Degenhart said Thursday.
If GM and PSA were to share more components, there will be additional business opportunities for Continental, Degenhart said. However, as the two car makers are planning to bundle their procurement processes with the goal to lower purchase prices, this could hurt car-part suppliers like Continental, Degenhart added.
On Wednesday, General Motors said it would acquire a 7% stake in PSA Peugeot as part of a broad alliance that each hopes will generate multi-million-dollar cost savings at their struggling European car operations. The alliance will include the sharing of vehicle architectures, components and the creation of a global procurement joint venture.
Degenhart declined to say how much business Continental has with each of the two car makers individually, but did say PSA Peugeot is among its ten largest customers.
-By Nico Schmidt, Dow Jones Newswires; +49 69 2972 5507; nico.schmidt@dowjones.com
(END) Dow Jones Newswires
03-01-12 0527ET
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