(Image Source: The Telegraph)

BY DAVID EARL

Instead of GM standing for General Motors, could it soon stand for Global Motors? This isn’t the company’s first foray into foreign territory, but the latest news out of the world’s largest car maker is making international headlines. Here’s Euronews.

“PSA Peugeot Cit and General Motors have confirmed they’re forming an alliance. GM will take a seven percent stake in the carmaker, which will issue new shares for that.”

So, to clarify, GM -- the U.S. industrial giant -- isn’t merging with a French car maker, just entering into a partnership. Forbes says it’s a move with several key benefits.

“Platform sharing. It’s a catch-all category that covers the underpinnings of different models … Global purchasing. The two companies say they’ll set up a joint unit to buy commodities, components and other goods and services … Logistics. This is where GM might get the most benefit for Opel, its troubled European unit.”

Both GM Europe and Peugeot have had a rough go of things over the past decade.  CNBC reports GM has lost about $12 billion on the continent during that time. They have the GM vice chairman in an interview...

“We both need to work on our internal profit improvement plans on our own (FLASH) We view this as adding tools to the toolkit so to speak.”

And Fox Business reports this Anglo-Franco deal could be a benefit financially to both sides.

“The cost gains from the deal, which will coincide with the joint development of new vehicle platforms, will be limited in the first two years of the deal but will eventually total $2 billion a year, split about equally.”

But a reporter for the Wall Street Journal sees this marriage as flawed from the beginning … kinda like the Chrysler-Mercedes relationship.

“This is a small zippy car with European racing heritage as opposed to the cars put out in the US which have no racing heritage at all.”

If the deal does through, GM will become the second-largest shareholder of Peugeot -- behind the 30 percent stake of the Peugeot family.