General Motors (GM.N) and PSA Peugeot Citroen (PEUP.PA) are discussing a manufacturing alliance designed to stem losses in Europe and reduce production costs elsewhere, sources with knowledge of the matter said.
Talks between GM, the world’s biggest automaker, and European No.2 Peugeot are focused on sharing vehicles and parts rather than swapping stakes, according to the people. Any new shareholdings that emerged would be small and symbolic.
French Labor Minister Xavier Bertrand confirmed that the government had been informed about a possible “strategic partnership,” online newspaper La Tribune reported that the discussions had been taking place for months, and the news sent the French automaker’s shares soaring on Wednesday.
Peugeot confirmed talks but would not name the partner, and GM spokeswoman Kelly Cusinato said “We routinely talk to others in the industry but have no comment beyond that.”
by Arthur Furrowfield