PARIS (Reuters) - PSA Peugeot Citroen agreed to form an alliance with General Motors , sources with knowledge of the discussions said on Wednesday.
GM will take a 7 percent PEUGEOT (UG.PA)stake as part of a share issue by the French automaker, and the two companies will pool research and development, vehicle platforms and technologies to target $2 billion in savings, a source said.
The agreement is to be announced after European markets close later on Wednesday, the sources said.
(Reporting by Philipp Halstrick and Julien Ponthus)
