Photo: original image created by autoevolution
Peugeot, the number two European carmaker and General Motors, currently the world’s largest automaker by volume, are considering an alliance. PSA has already had ties with a number of other automakers, including BMW, Ford and Toyota, but GM is so serious that they might be a stock position in the French carmaker.
GM might be interested in Peugeot’s help because their European division Opel isn’t doing so well and as been registering loses in the past years.
Automotive News Europe recently announced that PSA could sell a 7% percent stake to GM, and the announcement could be made as early as this week. This stake would stabilize the alliance, but GM would also be forced to sign an agreement not to buy any more stock. PSA could be offering a stock right offer creating new shares in exchange for fresh capital the company can use.
A person familiar with the matter said the alliance could see the two automakers developing engines together and even building cars off the same line.
Automotive News Europe recently announced that PSA could sell a 7% percent stake to GM, and the announcement could be made as early as this week. This stake would stabilize the alliance, but GM would also be forced to sign an agreement not to buy any more stock. PSA could be offering a stock right offer creating new shares in exchange for fresh capital the company can use.
A person familiar with the matter said the alliance could see the two automakers developing engines together and even building cars off the same line.
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