General Motors Announces Sale of PSA Stake
General Motors has announced that it is selling its remaining seven-percent stake in PSA Peugeot Citroen today.
The seven-percent stake equates to 24,839,429 shares of the French automaker and the sale will take place through a private placement to institutional investors. The American automaker acquired the stake in PSA Peugeot Citroen when it entered into a strategic alliance in 2012 with the French automaker.
SEE ALSO: PSA and Dongfeng Agree to Alliance
The news comes as PSA and Chinese automaker Dongfeng agree to an alliance that is backed by a $4.1 to $5.5 billion capital injection for Peugeot. The original partnership between GM and PSA Peugeot Citroen saw both automakers planning to share vehicle platforms, components and modules to create a global purchasing joint venture to improve both groups’ leverage in sourcing goods and services from suppliers.
“Our equity stake was planned to support PSA in their efforts to raise capital at the time of the creation of the GM and PSA alliance, and that support is no longer needed,” said GM Vice Chairman Steve Girsky. “The alliance remains strong with our focus on joint vehicle programs, cross manufacturing, purchasing, and logistics. We’re making good progress while remaining open to new opportunities.”
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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