Breaking: GM Announces Sale Of PSA Peugeot Citroen Stake, Alliance Will Continue
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In what seemed like a bit of a mess from the start, General Motors has announced that it will sell its 7 percent stake (24,839,429 shares) in French automaker PSA Peugeot Citroen through a private placement to institutional investors.
“Our equity stake was planned to support PSA in their efforts to raise capital at the time of the creation of the GM and PSA alliance, and that support is no longer needed,” said GM Vice Chairman Steve Girsky. “The alliance remains strong with our focus on joint vehicle programs, cross manufacturing, purchasing, and logistics. We’re making good progress while remaining open to new opportunities.”
So, while GM will sell its shares, the development of planned future vehicles remains unchanged.
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…what a thrilling week! 🙂
This Peugeot deal was a bad deal. Ink was harldy dry and now they are already selling their 7 percent stake. I suspect
PS- Anyone notice how similar Holden and Peugeot lion logos are? I think this was Gersky’s deal and it maybe part of the reason he’s gone. The JV partner I think GM should hook up with is Mazda. They need a partner and GM could use their product and technology. Mazda is hooked up already with Toyota since they lost Ford, so I guess it might be a non-starter.
I’m not sure GM “needs” Mazda’s product or technology. They can and are making their own.
One should look no further than the Alpha-based vehicles and their success (critical acclaim and sales) to see what the New GM can do when it 1) has the money and 2) can develop products from scratch, rather than being hamstrung financially and juggling aging programs/architectures and tech to save money.
In other words, there is no reason to believe that once G2, D2, E2, and Omega are out and fully deployed, that GM won’t show what’s what to the likes of Mazda and others.