Peugeot and Citroen could be sold to GM

Reports suggest that troubled Peugeot is running out of cash and turning to US-owned GM as a last resort

GM PSA agreement

The founding family of PSA Peugeot Citroen have offered to step aside to allow GM to take over the business in a last-ditch attempt to keep the company afloat, according to reports from news agency Reuters.

It is suggested that PSA could run out of operating capital by the end of the year, having burned 3 billion euros in operating cash last year. GM, which operates Vauxhall, Opel and Chevrolet in Europe, already owns 7% of PSA having invested in March 2012.

Plans are already afoot to produce a range of Peugeot, Citroen, Vauxhall and Opel models with shared engines and platforms, including a new Vauxhall Zafira, Peugeot 3008 and Citroen C3 Picasso.

Both GM and PSA are suffering from over-capacity, in spite of plans to scale back production. And any further tie-up would be dependent on GM being able to close factories across Europe to consolidate production, something that would be especially unpopular with French president Francois Hollande.

The Peugeot family initially asked for financial support from Chinese partner Dongfeng, but turned to GM when those talks came to nothing. According to Reuters, GM is ‘playing hardball’ by holding out for assurances that it can cut plants and jobs at a reasonable cost. It’s also reported that any decision is unlikely to be made before the German general election in September.

Former Peugeot GB managing director and now executive vice-president of corporate communications, Jon Goodman, told Reuters: ‘We don’t comment on speculation or rumours.”

Peugeot currently employs 77,000 people in France, while sales of Peugeots and Citroens fell 13.9% in the first five months of 2013 versus 2012, slightly worse the GM Europe’s drop of 11.0%.

Recommended

Stellantis maps out future EV platforms with up to 497 miles of range
Stellantis battery
Peugeot

Stellantis maps out future EV platforms with up to 497 miles of range

Four new EV platforms for Stellantis Group, the first of which we’ll see in 2023
20 Apr 2021
New Peugeot badge references 1960s logo and signals upmarket rebrand
Peugeot badge
Peugeot

New Peugeot badge references 1960s logo and signals upmarket rebrand

Peugeot looks to a future at the posh end of the Stallantis portfolio with a new logo and corporate look
25 Feb 2021
Peugeot Le Mans Hypercar: Paul Di Resta part of new WEC driver line-up
Peugeot LeMans hypercar - front
News

Peugeot Le Mans Hypercar: Paul Di Resta part of new WEC driver line-up

Peugeot's 2022 World Endurance Championship competitor will be driven Paul Di Resta, James Rossiter, Kevin Magnussen, Jean-Eric Vergne, Loic Duval, Mi…
8 Feb 2021
Stellantis: FCA and Groupe PSA merger confirmed
Stellantis logo
Fiat

Stellantis: FCA and Groupe PSA merger confirmed

Official: merger between two car giants becomes effective as of 16 January 2021 
16 Jan 2021

Most Popular

Appreciating cars: classic cars that go up in value
Appreciators: Renault 5
Features

Appreciating cars: classic cars that go up in value

Looking to invest in a modern classic? Here are some cars destined to appreciate in value
4 May 2021
Ford Escort XR3: we drive the hot hatch pioneer
Ford Escort XR3
Ford

Ford Escort XR3: we drive the hot hatch pioneer

Hot hatches democratised performance, and one of the pioneers, the Ford Escort XR3, is now over 40 years old
5 May 2021
New Bristol Buccaneer electric car to mark famous brand’s comeback
Bristol
Bristol

New Bristol Buccaneer electric car to mark famous brand’s comeback

Production of the Bristol Buccaneer is set to begin in 2025. Previous Bristol models will be re-engineered with 6.4-litre Hemi V8, and delivered in 20…
7 May 2021