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The founders of PSA Peugeot Citroen appear close to handing over control of operations to General Motors, according to reports.

Reuters reports that the founding family of PSA Peugeot Citroen has offered to give control of the alliance to GM as part of a plan that would see the companies’ current relationship expanded even further.

Sources with knowledge of the talks told Reuters that the future deal with GM would likely result in Peugeot being combined with the US car marker’s European arm, Opel.

“GM faces the same overcapacity situation with Opel, and that’s why PSA is trying to convince them to merge the two,” the unnamed source said.

“The Peugeot family has now accepted that they’ll lose control, so this is no longer an issue.”

Opel

Such a move would be expected to come with political pressure given the likelihood of associated job losses and plant closures across both France and Germany.

For Peugeot the move is seen as a way of ensuring the French manufacturer’s production future as it feels the effects of the European car sales slump that has already resulted in job losses, plant closures, and the selling of assets.

In April, Peugeot head of communications Xavier Crespin admitted to CarAdvice that the company had no alternative but to view the GM alliance as a necessity for survival saying, “If you want to be considering protecting PSA you have to accept the alliance”.

While GM acquired a seven per cent stake in PSA Peugeot Citroen in March 2012, the Peugeot family, which founded the French brand in 1810 as a manufacturer of coffee mills and bicycles, holds a 25.4 per cent stake in the company.




  • Declan Collins

    Interesting. I doubt the same outcome as SAAB and combining OPEL and Peugeot could lead to some very good vehicles.

  • davie

    GM can teach PSA the elusive magical art of how to move the cars fuse box out of the glove box, when converting design from LHD to RHD.

  • Golfschwein

    Sniff… :( So long as we don’t see a repeat of the SAAB debacle, I accept it’s for the better.

  • Jacob

    The Lion logo better not disappear!

    Make Peugeot a sub-brand of GM.

    • Darryl

      Peugeot and Holden could combine logos too – they’re both Lions. So we’d have Holden, Opel, Peugeot, and Citroen all competing in the same market. Sounds a bit British Leyland to me.

      • Doctor

        With quality to match!

      • Jacob

        wouldnt it be like VW, minus the unreliability.

        Skoda, Seat, VW, Audi share platforms and parts.

  • matt

    SAAB 2.0, buy manufacturers, ( saab, Daewoo) then run them into the ground while moulding them into cheap chevys….. there is no place for a second GM slightly premium brand (opel) that is Peugeot, first nail in Peugeot’s coffin, sorry guys.

  • Shak

    This move doesnt make any sense at all for GM. They dont need a second loss making European operation to deal with. They already have one basket case on their hands with Opel.

    • matt

      Spot on, I think this will be a Daewoo type case, buying and removing competition. I just don’t understand how “New” GM seems to be acting exactly like “Old” GM. More brands, more overheads, can we concentrate on the core products gm? commodore aside, everything else is plain lacklustre. More money to the product GM…. please…

    • Doctor

      I can’t work out who is the dumber – PSA or GM. GM already has Opel which it can’t turn around – what makes it think that it can do better with PSA in a SOCIALIST country. Goodyear is getting out of France – GM should be staying out. PSA on the other hand is a French company which can’t shut factories due to government interference so its Donald Ducked regardless.

  • Aus_poppa

    It need not be SAAB Mk.2. The Renault-Nissan alliance looks to have been beneficial to both companies.

    • Tone

      That’s a bit different. Firstly, Carlos Ghosn is in charge of the Renault-Nissan Alliance, and he’s one of the best CEOs in the business. Secondly, Nissan are not GM. Thirdly, GM have form of taking great automotive businesses and completely trashing them. *cough* Saab *cough*

  • DAVIDZ

    Not sure where this leaves Mitsubishi as they supply the outlander and asx to them?

  • Phil

    Sounds like the makings of a new OPEC crisis – Opel Peugeot Engineered Citroens. Sacre bleu!

  • Yamahaw

    The WSJ reported General Motors has no plans to invest additional capital in PSA.

    Looks like Peugeot and Citroen will be gone by 2014.

    • Sheldon

      Sad. I like the 508 specially in estate form :(.

  • Aus_poppa

    Don’t write off PSA. Although the French market is down the biggest seller is the Peugeot 208, and PSA has five out of the top ten sellers, with Peugeot and Citroen the top selling brands ahead of Renault.

  • Norm

    Its hard to make sense of it but then its been hard to make sense of a lot of PSA product for a good while. Their glory days seem a long time ago. Can’t imagine a merger with GM is going to give them their mojo back. Vive la difference.

  • Rocket

    There are simply too many manufacturers losing money competing in the market and expect more mergers, take overs and joint ventures around the globe. We already have the VAG group, Fiat/ Chrysler, Renault/ Nissan and now GM/PSA. Who knows Ford may buy more of Mazda and Volvo again if this is the trend?

    • DoubleBlue

      Could happen but I’d rather FORD link up with either MB/BMW/VW-AUDI

      • Tone

        Not likely. BMW is still very profitable (and majority owned by the Quandt family). VAG has its hands full already. As for MB … they damn near ran Chrysler into the ground.

  • marc gc

    Francois Hollande + GM = no car industry in france

  • WiillW

    I don’t understand what the PSA Family are thinking. Its a complex decision as PSA use a lot of other manufacturer mechanicals under contract, & GM will pick through the guts of PSA like Vultures taking the good bits and leaving the skeleton then walk away leaving others wondering why it failed.
    If the PSA family are looking for a good “Brand” manager, look to a company that has form, like BMW or Toyota. BMW supply the 1.6n/a and 1.6turbo engines under contract to PSA, so wouldn’t they be an obvious choice??