GM closer to Peugeot deal
FRENCH car maker PSA Peugeot Citroen is set to consult engine partners Ford and BMW before agreeing to a tie-up with General Motors.
The US firm is expected to take a seven per cent stake in PSA, which is reportedly planning a rights issue to raise cash for new ventures.
GM, the world’s biggest carmaker, and Peugeot are discussing a broad alliance designed to stem losses in Europe and cut production costs elsewhere, sources said. Last night PSA could not be contacted about the terms of a deal but industrial director Guillaume Faury said earlier: “If there’s any agreement that goes beyond our existing partnerships, each of those partnerships will have to evaluate what can be done”.
CM-CIC Securities analyst Florent Couvreur said: “The Peugeot family seems to be willing to dilute its stake a bit more and seems therefore to be ready to soften its position, which had always been considered by the market to be a brake on PSA’s strategic development.”