PSA Peugeot Citroen and General Motors, who have already confirmed that they will cooperate on B and D segment cars as well as a crossover and minivan, could expand their agreement to cover a small car for emerging markets as well as larger vehicles and transmissions.

But Peugeot has also said that it has suspended indefinitely plans to build a new compact vehicle at its plant in Madrid. The announcement was made following a meeting with union representatives.

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The decision is among several cost-cutting moves announced by Peugeot. 

Other projects postponed include the manufacturing of a dual clutch transmission at Valenciennes, France. The company is delaying this by seven months while it looks at other options with GM.

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