GM Will Not Invest Anymore Into PSA Regardless of Financial Problems

General MotorsGMUnited States of America, 1998 > present8 models
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CEO Dan Akerson says that the company has no plans to buy any more of PSA/PeugeotPeugeotFrance, 1882 > present120 models
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-CitroënCitroënFrance, 1919 > present94 models
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regardless of how the French company is doing financially. GM owns a 7% stake in PSA.

"We don't have any intention of investing additional funds into PSA at this time. If we see something changes, we'll evaluate that," said Akerson.

PSA is closing its Aulnay factory near Paris and cutting 8,000 jobs. It is possible that it might have to sell more assets.

PSA’s problem is that until recently it focused on the European market. With the European auto market at its lowest point in 20 years, it is hard to maintain sales. PSA has successfully moved into China, but it is not enough to offset poor European sales.

Source: Automotive News Europe