Editor/Reporter - CheersandGears.com
February 22, 2012
Question: What do GM's European arm and Peugeot-Citroën have in common? The answer; both are in dire financial straits and are trying to turn their fortunes around. GM's European arm announced a $562 million loss in 2011. Meanwhile, Peugeot-Citroën's announced a loss of $121 million in 2011 and has cut 6,000 jobs.
It seems fitting then that GM and Peugeot-Citroën are talking about an alliance. Reuters is reporting that the two are in talks about a possible alliance. The alliance would have Opel/Vauxhall and Peugeot-Citroën cooperating on projects ranging from developing engines and transmissions to complete models that each brand could sell. No shares for either company would change hands.
French newspaper La Tribune says the talks have been going on for the past few months and is entering the final stage of negotiations.
When asked for comment, GM spokesman Johan Willems said,
"We routinely talk with others in the industry, but have no comment beyond that."
PSA, Peugeot & Citroën's parent company said in a statement,
"In the context of its globalization strategy and improving its operational performance, PSA Peugeot Citroen looks at potential cooperations and alliances, There can be no certainty at this stage that these discussions will result in any agreement."