The PSA Group has extended their relationship with Gefco for at least five more years, after a contract worth around $8 billion was signed to continue working together, with some slight alterations under this new agreement.

Gefco will be working on the design and implementation of global logistics and transport solutions for Peugeot, Citroen and DS, which are the three PSA Group brands, through managing and optimising the entire supply chain.

“The agreement will be a powerful driver of improved operating performance at the PSA Group” said PSA’s Executive Vice President of Purchasing, Yannick Bezard. “We have every confidence in GEFCO’s ability to partner us as we navigate a challenging transformation, pursue new business opportunities and develop internationally.”

Gefco will also be in charge of distributing spare parts as part of the new agreement, on top of sourcing components for production and assembly plants to distribute the manufactured vehicles. Combining road, rail, sea and air and inland water, Gefco will be creating effective multi-modal processes as well as coordinating the specially chosen suppliers working with the PSA Group.

“All of GEFCO’s teams are actively committed to meeting our customers need for efficiency” said Luc Nadal, GEFCO’s chairman of the managing board. “Every day, they demonstrate their ability to support our customers as they grow internationally, while working with them to tackle their long term growth and profitability challenges.”

The new agreement does not begin straight away, however the changes will be implemented on January 1st 2017. Both companies will be hoping they can help each other to grow significantly in the five years they will be working together, with the intentions possibly being to continue working together further after that should they enjoy a successful time together, but there is plenty of time before that decision needs to be made.