PARIS, Dec 20 (Reuters) - General Motors Corp and PSA Peugeot Citroen have discarded the idea of jointly developing a large car and will base their alliance on three smaller vehicle projects, the automakers said on Thursday. GM and Peugeot also said in a statement that they will seek to jointly develop a new generation of small gas engines and will explore "product and industrial initiatives in Latin America or other growth markets."
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