INITIATIVES to reduce research and development costs and increase the use of shared production facilities have been revealed by the French-based PSA Group - parent company of Peugeot and Citroen. The developments, announced this week, will not impact on the brand image of either marques and both Peugeot and Citroen will retain separate customer-facing operations.

However, the two companies, which already share some engines, platforms and other parts will forge closer links in a bid to increase profitability, revitalise innovation and renew growth.

The move has a hint of Volkswagen Group about it where platforms, engines and other parts are used across all four of the company's brands - Audi, SEAT, Skoda and Volkswagen. Long-term PSA aims to create three separate platforms for Peugeot and Citroen cars and light utility vehicles, a platform for sub-assemblies such as engines and transmissions and a co-operations platform for MPVs.