NEWS: Report: GM Considering Alliance, Equity Stake Purchase in Peugeot

February 27, 2012
Peugeot 107 Front Three Quarter
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**UPDATE**
A report from Reuters is indicating that General Motors is in advanced talks with Peugeot-Citroen for a small equity stake purchase in the French automaker as part of the reported strategic alliance. The percentage is reported to be less than 5 percent, and neither company yet offered any official comment.
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General Motors and French automotive conglomerate PSA Peugeot Citroën may be in talks to form a manufacturing alliance. According to Automotive News, the two automakers are considering a manufacturing alliance to share new vehicles and parts, primarily in Europe.
The proposed alliance would reportedly have huge benefits for each side. PSA Peugeot Citroën could help General Motors build engines, transmissions, and vehicles for sale in Europe under the Opel and Vauxhall brands. GM could help PSA improve its market share in markets like China and Brazil, and also possibly the U.S. The last time PSA sold cars here was under the Peugeot name in 1992.
PSA is the second-largest automaker in Europe, after Volkswagen Group, and sold 1.68 million vehicles there in 2011. GM sold only 1.17 million vehicles in Europe last year. The two companies could announce a partnership at the Geneva Motor Show in March.
It wouldn't be the first time that GM and a French automaker have tried to establish joint-venture efforts. GM works with Renault-Nissan to sell certain vans in Europe, which are branded as the Opel/Vauxhall Vivaro, as well as the Nissan Primastar and Renault Trafic.
PSA has also partnered with BMW to provide engines for the Mini brand, and with Mitsubishi to sell Peugeot- and Citroën-branded versions of the i-MiEV electric car, along with the Outlander and Outlander Sport crossovers.
A General Motors spokesman told Automotive News that the company had no comment. A press release from PSA Peugeot Citroën confirmed that "discussions are taking place" but said "there can be no certainty at this stage that these discussions will result in any agreement."
Sources: Automotive News, PSA Peugeot Citroën, Reuters
Peugeot 3008 HYbrid4 Front

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