PSA Out Of Cash - Should GM Swoop In To Save The Day?

 The founding family of PSA Peugeot Citroen have offered to step aside to allow GM to take over the business in a last-ditch attempt to keep the company afloat, according to reports from news agency Reuters.

It is suggested that PSA could run out of operating capital by the end of the year, having burned 3 billion euros in operating cash last year. GM, which operates Vauxhall, Opel and Chevrolet in Europe, already owns 7% of PSA having invested in March 2012.

Plans are already afoot to produce a range of Peugeot, Citroen, Vauxhall and Opel models with shared engines and platforms, including a new Vauxhall Zafira, Peugeot 3008 and Citroen C3 Picasso.


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freeagent - 7/1/2013 6:24:02 PM

+1 Boost

No. Stay away. PSA is a dead cat bounce.

dumpsty - 7/2/2013 9:45:48 AM

+1 Boost

This ones a tough decision. Though GM shouldn't just simply walk away. A resulting agreement would hand GM total control and give them a greater ability to strengthen the local guy while increasing market share in Europe.

On the downside, it'll be GM dropped a failing biz (SAAB) to pick up a severely wounded biz (PSA) --- hard to tell how the overall automarket would handle the closure of PSA. I bet some other (German) automaker would step in & purchase PSA, them flip them into a profitable firm with desirable designs.

GM....take the chance...buy PSA.