An article in the New York Times (Feb 29,2012) describes a decision by General Motors to invest in 7% of Peugeot, creating an alliance. The associated $125 billion spend of the two companies is expected to deliver synergies in the billions, albeit with risks.  Reduction in capacity, common architectures, while maintaining seperate brands – can that deliver the desired synergies ? What are the associated supply chain risks in this alliance ?