For those that think Opel is in bad shape, PSA Peugeot-Citroen seems to be in worse shape. How bad are things? Reports are indicating that the company may not have enough capital to operate by the end of the year. That being the case, the Peugeot family may give General Motors the wheel in a last-chance effort to save the company.
Reportedly, Peugeot has attempted to seek capital from businesses elsewhere, but a lack of bidders who are both interested and capable have pushed PSA in between a rock and a hard place, and has turned to GM — which owns seven per cent of the current business. The move was made with the support of current PSA Chief Executive Phiippe Varin, according to Reuters.
If that GM does end up running PSA, it’s a given that plants will close and jobs will close. At the same time, General Motors — according to a Reuters source — is ready to inject capital into PSA if the company is given control of the French automaker.