Peugeot moots General Motors alliance in Europe
GENERAL Motors and PSA Peugeot Citroen are discussing a manufacturing alliance designed to stem losses in Europe and reduce production costs elsewhere, sources with knowledge of the matter said.
Talks between GM, the world’s biggest carmaker, and European number two Peugeot are focused on sharing vehicles and parts rather than swapping stakes, according to the sources.
Any new shareholdings that emerged would be small and symbolic.
Peugeot confirmed talks but would not name the partner, and GM spokeswoman Kelly Cusinato said: “We routinely talk to others in the industry but have no comment beyond that.”
Peugeot shares jumped as much as 21 per cent, and closed 12 per cent higher at €16.12, the biggest one-day gain in three years, while GM was down 0.1 per cent.