GM Currently Has “No Intention” To Invest More In PSA Peugeot Citroen
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During a briefing on GM’s 2012 financial performance, Chief Financial Officer Dan Ammann made it clear that The General has no plans to make any additional financial commitments to the PSA Peugeot Citroen partnership to gain a larger ownership in the company, according to reports.
Ammann’s comments come on the heels of GM’s French partner reporting an annual loss of $6.74 billion for 2012. GM purchased a seven percent stake in the French automaker to the tune of $335 million around this time a year ago, and some would say that the American automaker overpaid. Regardless, it’s full speed ahead with the companies’ joint future product plans.
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Of course they overpaid, they slow down and stop the train before its too late.
GM saved FIAT with a similar investment and platform sharing strategy, look how that turned out for FIAT; now controlling Chrysler. I wonder how things would have gone if GM would have exercised the ‘put option’ that was in place with the FIAT deal to fully buy FIAT (GM made a 20% purchase originally with an option after 4 years to buy the remaining 80%). GM would have Ferrari, Maserati, Alfa, Lancia, and obviously Fiat.
GM didn’t save Fiat, Sergio called GM’s bluff and got 2 Billion in cash as a breakup fee for nothing. And then Obama gave Chrysler to Sergio for nothing. Sergio is a very good negotiator, but Fiat has been struggling and losing money for years and continue to do so today, ironically, if it wasn’t for the money coming in from Chrysler in 2012, Fiat would be bankrupt and buried by now.
Acquiring Fiat in 2005 would have hurt them more than help them, they made the right decision to get away from Fiat, too bad it cost them 2 billion.
GM got nothing from the Fiat deal and will get nothing from the PSA deal.
I note with interest the word “currently”.
Was that word actually spoken by Mr. Ammann?
Considering some of the things a Facebook friend has told me about PSA cars, I do not understand why GM would shack up with them at all.