Peugeot mulls giving up PSA control to General Motors

Article by Anita Panait, on June 28, 2013

The Peugeot family has offered to surrender control of PSA/Peugeot-Citroen as the carmaker revive plans forging closer connection with General Motors' Opel through a capital injection, sources told Reuters. Any agreement merging PSA with Opel would encounter major political opposition since it would result to more site closures and job losses in France and Germany, people privy with the talks told Reuters.

The Peugeot clan is turning to GM after shoving away other potential investors like Dongfeng Motor Group, which is PSA's production partner in China, the sources said. One of the sources told Reuters that PSA is trying to convince GM to merge the French carmaker and Opel since both have the same problem -- excessive production capacity.

The source noted that now that the Peugeot family has accepted that they will lose control of PSA, "this no longer an issue." The Peugeot family owns a 25.4 percent stake in PSA, giving the clan a 38.1-percent command of voting rights in the carmaker. On the other hand, GM holds a 7-percent stake in PSA.

Sources told Reuters that before injecting more capital into PSA, GM would need assurances that it could cut production capacity as manage the merger of the French carmaker and Opel. Peugeot, Citroen and Opel are among the brands suffering the most from the worsening demand for vehicles in Europe. [source: automotive news - sub. required]

Topics: psa, peugeot, gm

If you liked the article, share on:


Login or Create new account to add a comment!


It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016