Photo: Peugeot
GM's announcement last week that it has sold its remaining share in the French carmaker for just $320 million was not received well by the European stock market. Shares of PSA Peugeot Citroen Plunged 12% and are currently down another 4.4% in early Monday trading.
AT the current price of 8.93 per share, Peugeot is worth only about €3 billion as the French car company's value is weighed down by lack of demand for its products, debt and restructuring problems.
The 7% stake in PSA was bought by GM last year as part of an alliance between the two. Their original plans have had to be scaled back, as GM faces its own problems in Europe. The cost saving anticipated from joint purchasing of supplies has gone down to US$1.2 billion from the original $2 billion.
It's yet unclear if Chevrolet's departure from Europe in 2015 will leave any room for joint assembly or development between the two automakers. Recent reports suggest the next generation Opel Corsa, due out in 2018, will no be developed on a joint B-segment platform. GM said in October that they would continue to develop Meriva and Zafira MPV replacements together with PSA and due for a 2017 launch.
The 7% stake in PSA was bought by GM last year as part of an alliance between the two. Their original plans have had to be scaled back, as GM faces its own problems in Europe. The cost saving anticipated from joint purchasing of supplies has gone down to US$1.2 billion from the original $2 billion.
It's yet unclear if Chevrolet's departure from Europe in 2015 will leave any room for joint assembly or development between the two automakers. Recent reports suggest the next generation Opel Corsa, due out in 2018, will no be developed on a joint B-segment platform. GM said in October that they would continue to develop Meriva and Zafira MPV replacements together with PSA and due for a 2017 launch.
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