PSA Peugeot Citroen willing to give control to GM - report

2013 Peugeot 2008
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."

Source: Reuters

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Comments (8)

automophile83 automophile83
build the Monaro and give US a Chevelle. Please!
Sep 14th, 2013 2:51am
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RaymondBridges RaymondBridges
to see a company like psa in such trouble is sad, although their more modern efforts are an insult to the peugeot and citroen models of old, however giving control over to GM is pretty much calling the undertaker!
Jul 8th, 2013 2:09am
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xLumino xLumino
oh no, don't make the same mistakes like Opel/Vauxhall and Saab
Jun 29th, 2013 2:47pm
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TomasramonCorrea TomasramonCorrea
This is so sad. There goes uniqueness down the drain.
Jun 28th, 2013 5:19pm
1 0
Psa is in deep trouble and GM will just buy another dying company. Keep away.
Jun 28th, 2013 6:20am
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Aesthetics Aesthetics
ladies and gentlemen, the age of car boom is over. now its a matter of survival until an alternate to fossil fuel and raw material has been found to replace them. the price of greed, trying to offer as much profit as possible compromising cost to build product has paid its price. if they could manage their greed level and offer us seriously good products, recycle used material and find fuel that are have no dead ends, then we can cycle vehicles and see less companies faltering
Jun 28th, 2013 5:59am
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tomi.ro tomi.ro
nooooooooooooooooooooooo...yo' pejo family, sell citroen to tesla motors, to keep the name of andre citroen clean of those fat-ass GM bastards. if you want peugeot name to be raped that's your problem, but not citroen.
Jun 27th, 2013 11:48pm
1 1
Mrk836 Mrk836
And here I was wishing that citreon would come over to us soil BUT ONLY THE numero 9,ds wild rubis, survolt, gt, metropolis, ds3 and d4 models. I would buy one or all of these in a heartbeat. But not if gm has its dirty hands on them. Not thanks
Jun 27th, 2013 10:56pm
2 1