General Motors, which took a 7% stake in PSA Peugeot-Citroën in February to form a strategic alliance, could extend that to more than 30% as the two struggling companies look to form a joint venture, according to French media reports.
The reports suggested that GM’s loss-making European Opel-Vauxhall division could be merged with Peugeot-Citroën. La Tribune speculated that a 50-50 joint venture could be reached by the end of this year although that is seen as unlikely since it would mean the Peugeot family, which owns 37.9% of PSA, would surrender too much control.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Automotive News Europe suggested an alternative scenario would see GM raise its stake to 30% and inject around US$10bn (EUR7.8bn) into the venture.
No one from GM or PSA has commented on the reports.
