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.
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.