GM to buy seven per cent stake in Peugeot: report
Last week we reported General Motors and Peugeot-Citroen PSA were in discussions over a potential partnership deal. There's now a report indicating that GM is considering purchasing seven per cent of PSA.
According to an Automotive News report, PSA could sell around seven per cent of Peugeot to the US auto giant. The report says an announcement could be made as soon as this week.
It's understood the deal would be part of an agreement whereby GM could not purchase further shares in the future unless given permission from PSA. A GM representative and a Peugeot representative have been contacted by various publications, however, both have declined to comment at this stage.
The potential deal could see shared manufacturing of components and engines in Europe, as well as both companies building complete cars together.
GM may also use Peugeot to gain a better grasp of the European market to reverse dwindling Opel sales, while Peugeot may use GM to span out further from Europe, possibly back into the US. Peugeot hasn't been available in the US since 1992.
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