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Found 2 results

  1. William Maley Staff Writer - CheersandGears.com November 14, 2012 The talks between General Motors and PSA-Peugeot/Citroën have come to halt. According to Reuters, the talks were stopped due to worsening finances and a government-backed bailout. As we have been reporting since February, General Motors and PSA have been in talks about expanding their alliance. Rumors have ranged from 50/50 deal, selling Opel to PSA, buying up PSA's auto division, and putting Citroën, Opel, and Peugeot into one new entity. Sources close to talks tell Reuters the talks have been off after Peugeot agreed to take a bailout from the French Government. Peugeot/Citroën are currently burning through 160 million euros (about $200 million) a month. Taking the bailout also means PSA can't shed anymore jobs and factories, nor make any deeper ties with GM. "They now consider that any deeper tie-up is unlikely before 2014, when the market picks up," a source told Reuters. "The government bailout conditions rule out French job cuts, which means a deal can't happen any faster. It would be politically impossible to have all the cuts falling on the German side." For the time being, GM and PSA's basic agreement stands. Source: Reuters William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. Related Stories: An Alliance Is Formed: GM Buys 7% Stake Into PSA Peugeot Citroën Rumorpile: Is There More To The GM-PSA Deal? GM and PSA Announce Four New Co-Developed Platforms
  2. William Maley Staff Writer - CheersandGears.com November 14, 2012 The talks between General Motors and PSA-Peugeot/Citroën have come to halt. According to Reuters, the talks were stopped due to worsening finances and a government-backed bailout. As we have been reporting since February, General Motors and PSA have been in talks about expanding their alliance. Rumors have ranged from 50/50 deal, selling Opel to PSA, buying up PSA's auto division, and putting Citroën, Opel, and Peugeot into one new entity. Sources close to talks tell Reuters the talks have been off after Peugeot agreed to take a bailout from the French Government. Peugeot/Citroën are currently burning through 160 million euros (about $200 million) a month. Taking the bailout also means PSA can't shed anymore jobs and factories, nor make any deeper ties with GM. "They now consider that any deeper tie-up is unlikely before 2014, when the market picks up," a source told Reuters. "The government bailout conditions rule out French job cuts, which means a deal can't happen any faster. It would be politically impossible to have all the cuts falling on the German side." For the time being, GM and PSA's basic agreement stands. Source: Reuters William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. Related Stories: An Alliance Is Formed: GM Buys 7% Stake Into PSA Peugeot Citroën Rumorpile: Is There More To The GM-PSA Deal? GM and PSA Announce Four New Co-Developed Platforms View full article
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