Saturday, June 29, 2013

PSA Peugeot Citroen willing to give control to GM - report

 PSA Peugeot Citroen willing to give control to GM - report


2013 Peugeot 2008

Sources say the Peugeot family has accepted they will lose control


PSA Peugeot Citroen's founding family is reportedly offering to give General Motors control of the company in return for a substantial investment.




Details are limited but the latest round of negotiations appear to involve a wide-ranging joint venture that would put General Motors in charge of a new business entity that controls Opel, Vauxhall, Peugeot and Citroën. The talks started late last year but broke down shortly thereafter. However, sources have told Reuters "The Peugeot family has now accepted that they'll lose control, so this is no longer an issue."




In return for a substantial investment, GM wants free rein over the proposed joint venture. This would enable the company to reduce overcapacity by eliminating jobs and closing factories.  However, this would face strong opposition from politicians and labor unions.




Both companies declined to comment on the rumors, but GM CEO Dan Akerson has previously said "We don't have any intention of investing additional funds into PSA at this time. If we see something changes, we'll evaluate that."


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