General Motors to Buy 7-Percent of Peugeot
As part of a development alliance, it appears that French automaker PSA Peugeot Citroen will be selling 7-percent of its company to General Motors this week.
If the deal is to go through, it will include a standstill agreement in which GM would not be able to take a greater holding of Peugeot without permission. Peugeot however may offer additional shares through a rights issue as part of the transaction.
A person familiar to the matter told sources that a GM-Peugeot alliance would involve co-developing engines and building vehicles together in the region. This all makes sense for GM, as the world’s largest car maker continues building alliances worldwide. More importantly however, this will assist in turning around the Opel brand to hopefully be a profitable one.
According to sources however, no final agreement has been reached and the size of the stake could change. Reuters is reporting that a separate source said GM would likely purchase a stake of less than 5-percent. Either way, it appears that GM and Paris-based Peugeot are going to be getting in business with one another rather shortly.
[Source: Automotive News]
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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