GM-PSA Peugeot Citroen joint-venture talks break down - report

Opel Astra BiTurbo
Opel Astra BiTurbo

Deal unlikely to happen before 2014 at the earliest

The joint-venture talks between General Motors and PSA Peugeot Citroen have reportedly broken down as a result of the French automaker's deepening financial crisis.

Sources familiar with the matter have told Reuters that General Motors has misgivings about PSA's government-backed bailout of their lending arm last month.

While the talks are currently on "pause," both companies are still interested in a deeper tie-up. However this is now unlikely to occur before 2014. As one source explained, "The government bailout conditions rule out French job cuts, which means a deal can't happen any faster. It would be politically impossible to have all the cuts falling on the German side."

As we have previously reported, the proposed joint-venture would combine Opel, Vauxhall, Peugeot and Citroën into a new business entity. The exact benefits are unknown, but GM reportedly wants the joint-venture to happen so they can get Opel's losses off their books.

Related Articles

Add comment

subscribe to comments
comment rules Add comment

Comments (2)

AlexandruMaftei AlexandruMaftei
hope Opel does not have the same faith of Saab .... :(( ....
Nov 14th, 2012 9:22am
0 0
Not that Opel is doing that great at the moment but definitely unfair for the German workers.
Nov 14th, 2012 7:14am
0 0