GM confirms no plans for more investments at PSA

Article by Anita Panait, on July 17, 2013

General Motors has no plans to make further investments in PSA/Peugeot-Citroen, GM Vice Chairman Steve Girsky reiterated to Bloomberg. He even called the speculation on intensifying the alliance between the carmakers a distraction. Girsky said that all he wants to do is get the current programs to work.

French dailies have reported that France has made a decision to hire an advisor bank for PSA/Peugeot Citroen. According to Le Figaro, France’s move indicates further ties between PSA and GM or with Dongfeng.

GM already invested EUR320 million ($418 million) in 2012 to acquire a 7-percent stake in PSA as part of an alliance that entails joint purchasing and vehicle development. Girsky is in charge of overseeing GM’s bid to curtail losses in Europe by mid-decade as well as and rebuild the Opel brand.

He was responsible to realizing the deal with PSA and was interim chief of GM’s operations in Europe until he hired former Volkswagen AG executive Karl-Thomas Neumann to lead Opel.

Girsky referred to comments by GM chief executive Dan Akerson in June in Shanghai that the carmaker has no plans to invest more money into PSA “at this time.” Akerson said by then that if they see something change, they “will re-evaluate that.”  PSA posted EUR5.01 billion ($6.5 billion) in losses in 2012, with EUR576 million in operating loss. The carmaker saw its first half sales drop 9.8 percent this year. Its shares also fell 38 percent this year through July 11, 2013.

Topics: gm, psa, investment

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