GM News: Rumorpile: GM Buying 5% of Peugeot-Citroën To Cement Deal

[William Maley]

William Maley

Editor/Reporter - CheersandGears.com

February 28, 2012

Last Wednesday, we reported on talks between General Motors and Peugeot-Citroën on a possible alliance. Now, Reuters is reporting the talks have gone into advance stages and General Motors could be buying up a small share.

Reuters has learned from a couple sources at both companies that General Motors would purchase 5% of Peugeot-Citroën as part of their alliance deal. The stake could be worth $240 million dollars at Peugeot's current market value of $4.8 billion.

Sources say the deal could be announced within the next few days, but caution that an agreement has not been reached and the talks could still fall apart.

When asked for comment, GM and Peugeot-Citroën didn't respond.

Source: Reuters

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[Drew Dowdell]

But what is GM getting out of this?

[Camino LS6]

But what is GM getting out of this?

Exactly.

To what purpose?

[cletus8269]

i guess GM got their tax return back and its burning a hole in its pocket...

[Drew Dowdell]

GM wants something out of Citroen-Peugeot... they didn't just do this to blow through their allowance.

[David]

Except for small Diesel cars for other than NA markets, I am having a hard time finding any reason for this. It will be interesting to see why they would do this.

[Robert Hall]

Maybe some platform development cost sharing for future Opel/Vauxhall models. Maybe access to factories. Not sure about the diesels, O/V already has plenty....

[riviera74]

Given that Europe is economically volatile, why is GM doing this? Why not just find a way to boot out (or radically restructure) Opel and Vauxhall? Why does GM need this alliance? What can Peugeot provide that GM cannot?

[crash900s]

Maybe they'll use their voting seat to eventually kill PSA so they have less competition.

[David]

Maybe they'll use their voting seat to eventually kill PSA so they have less competition.

Me Like this Idea!

Also as someone else stated, use this arrangement to finally kick Opel inline to clean up the house and become profitable or shut t down.