PSA could join forces with General Motors
PSA Peugeot Citroen could find salvation in America. Held by the French manufacturer Peugeot family experiencing great difficulties – the automotive division has lost money in 2011 – has confirmed tonight that "considering proposed cooperation and alliances (…) in its globalization strategy and performance improvement. " The group does not directly project with General Motors but Latribune.fr and Financial Times both report that the French group is in advanced talks with the U.S. giant. For now, GM has declined comment. Kelly Cusinato, spokesman for the group, simply reaffirmed that GM "regularly speak to other companies in the sector but we do not comment anything beyond that." According Latribune.fr, discussions between the two automakers started there "few months" might even lead to an agreement that would be formalized during the Geneva Motor Show in early March.
The reconciliation between the two groups are "an alliance, not a merger or ad hoc cooperation" as the French group may have with competitors like Ford, Toyota and BMW. Such a project would enable a PSA to get a second wind while the group in crisis is unable to fund the investment needed for its redevelopment internationally.
If this project goes to completion, it would make strategic sense, and would bring synergies for both groups. It would create a powerful global industry leader with over 11 million vehicles sold per year worldwide. PSA lacks international basis although it is a major strength of GM, the first manufacturer in the world. For its part, the American manufacturer said last week that he wants to refocus the strategy of its European subsidiary Opel, which has lost $ 747 million in 2011. "An alliance between Peugeot and Opel would be strategic because their production units do not overlap. PSA is mainly located in France and in southern and eastern Europe as Opel is more present in Germany and the north, "says the Financial Times.
But any agreement must first be approved by the Peugeot family, which owns 30.9% of the capital and 48.3% of the voting rights of PSA, said LaTribune.fr reminder that the American manufacturer is "twice as big "in sales as its French rival.
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