Cloudy Weather Report Ramallah, Palestine +4°C, Cloudy

Breaking News

Home | Tech |

Peugeot in talk 'strategic partnership' with GM

Peugeot in talk 'strategic partnership' with GM

Leading French carmaker PSA Peugeot Citroen is in talks with US giant and world number one General Motors on forming a "strategic partnership," French Labour Minister Xavier Bertrand said Wednesday.

The news sent Peugeot shares soaring almost 13 percent to 16.20 euros ($ 21.4) in early afternoon trade on the Paris stock exchange.

"The chairman of the group informed me last night about discussions for a strategic partnership and told me it was good news for the group", Bertrand told Europe 1 radio.

Bertrand said Peugeot chairman Philippe Varin had told him the deal would allow the French group to cut its production costs but he would not be drawn on whether the plan was for a full merger or a simple alliance.

The minister said the talks were broadly good news but that his government was seeking assurances French jobs were safe. President Nicolas Sarkozy is seeking re-election in nine weeks and Peugeot is a major French employer.

The French state helped bail-out both Peugeot Citroen and its rival Renault during the recession that followed the 2008 credit crunch but does not hold a stake in the group. It will nevertheless watch the talks closely.

"The government does not interfere in decisions taken by big private groups but obviously we're watching the situation at PSA closely because it concerns French industrial strategy and jobs," said Budget Minister Valerie Pecresse.

Peugeot confirmed overnight it was in talks with other carmakers, without identifying GM, and the business daily Les Echos said the two groups were planning to announce their alliance at the Geneva motor show next month.

"In the context of its globalisation strategy and improving its operational performance, PSA Peugeot Citroen looks at potential cooperations and alliances," the firm said in a press statement.

"Discussions are taking place and there can be no certainty at this stage that these discussions will result in any agreement," it said.

General Motors also refused to confirm the deal, saying simply: "GM regularly holds discussions with others in our sector but wishes to make no comment on this specific information."

Peugeot is France's top car manufacturer, ahead of Renault, and Europe's second, behind Volkswagen.

The Peugeot family controls 30.3 percent of the capital and 45.75 percent of voting rights in the firm which effectively took over French car manufacturer Citroen in 1976.

Last year, the firm, which employs 205,000 people worldwide, sold 3.5 million cars around the world, two-thirds of them in Europe where the market is under pressure as the economy slows sharply.

The Financial Times reported that the alliance would see Peugeot and GM's European subsidiary Opel Vauxhall jointly developing parts and engines in Europe for vehicles sold under their respective brands.

PSA revealed last month that it was open to the idea of an international alliance but rumours had earlier focused on a possible tie-up with the US and Italian group Fiat-Chrysler.

PSA's sales fell 1.5 percent last year and its net profit was cut in two, to 588 million euros ($777 million).

The group already has cooperation agreements with Germany's BMW to build petrol engines, with Italy's Fiat and Turkey's Tofas to build light trucks, and with US giant Ford for diesel engines.

It works with Japan's Mitusibishi to build SUVs and electric cars, with Toyota for small cars and with its historic French rival Renault to build motors and mechanical parts.

But the group has struggled to compete globally with industry mammoths like GM, Toyota and Volkswagen and auto alliances such as Renault-Nissan and Fiat-Chrysler.

Disclaimer: Opinions expressed here are those of the writers and do not reflect those of BlackSeer.com. BlackSeer.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority.
What's next

Tags

Technology news french car maker peugeot citroen general motors xavier bertrand philippe varin

Related Articles

Mac computers 'infected with malware'

More than half a million Apple computers have been infected with the Flashback Trojan, according to a Russian anti-virus firm.Its report claims that about 600,000

Can computers have true artificial intelligence?

Is it possible to create true artificial intelligence and, if so, how close are we to doing so, asks mathematician Professor Marcus du Sautoy.It was

Jonathan Urges MDAs to Connect to Satellite

The China Great Wall Industry Corporation (CGWIC) on Monday formally delivered the communication satellite, Nigcomsat-1R; which it helped Nigeria launch last year to President Goodluck

Most Watched Videos

View all posts

Africa Worships With Sonnie Badu - Part 2

Re - Live the live experience of Africa Worships with Sonnie Badu.  A night of fresh fire, oil and rain as promised by God's Servant. This

Most Read News

View all posts

Most Watched Movies

When You Love Someone 2- Part 2

Starring: Frank Artus, James Gardner, Judith Asante Love is in the air... when Shamell and Evans called in for their favorite radio program. They

To Live Again 2 - Part 2

Features: Justice Esiri, Ini Edo Ehiagwinah,Chidi Mokeme Caught up in the web of a heartless man, my husband. He forced me to sign a divorce paper

Cry Baby

Nick (Mike Ezuruonye) is the only son of chief Roberts. After the death of his mother, he takes his mum's death out on the

Brothers Apart 2

James(Chinedu Ikedieze)betrays his family because of his greedinesss and love for money. This brings quarrel between him and his siblings Starring: Chinedu Ikedieze

Keziah

Cletus (John Okafor) has a beautiful daughter Keziah (Mercy Johnson) who is a sex maniac, despite having a good christain and moral upbringing. Starring: Charles

ABOVE PRINCIPALITIES 3 - Part 2

ABOVE PRINCIPALITIESThey've lived for about 20 year without a child. Theyare very influential in the society. It is indeed their  plight God grants

Mother's Cult - Part 2

Sequel to Drop of Blood.       Starring: Patience Ozokwor, Ngozi Ezeonu, Mike Ezuruonye       How far will a mother go to make child(ren) happy to break the cycle of

End Of Bomb Blast 2

Starring: Funke Akindele, Yul Edoche A man's Innocence has to be proven when his business partner who he had an argument with was later found dead

Show Girls Reloaded 2

Features: Frank Artus, Oge Okoye, Sam Sunny, Vincent Opurum, David McKenzie       It's a captivating story about two desperate ladies that shows off on campus contending over