General Motors Failure To Support Partner PSA Forced Them Into Chinese Arms

General Motors Co. scaled back cooperation with PSA/Peugeot-Citroen months into their alliance and later turned down a government-backed merger, leaving China's Dongfeng Motor as the French carmaker's last hope, people familiar with the matter told Reuters.

GM took a 7 percent stake in PSA after the carmakers announced what was billed as a broad-based alliance in February 2012.

The alliance hit obstacles within eight months, when GM revealed that its Chinese partner SAIC would veto key plans including joint GM-PSa development on larger cars, said the sources, who declined to be identified because the matter was confidential.

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Need4Speed - 10/15/2013 2:43:08 PM

+1 Boost

Chinese have more money than we do and that's what happens in a Capitalist system. Eventually we'll get over it and find something else to get fixated on.

HughJass - 10/15/2013 4:24:35 PM

+1 Boost

For a country of 60 million people with high wages, no distinctive brand like the Germans (and other barriers to competitiveness), having 3 car companies doesn't work.

Ssongyang of South Korea is basically dead and that country and its government are only willing to support and protect 2 (actually 1) car company.

Why the shock? China bought Volvo, now Peugeot, tomorrow your mother once you put a price tag on her so you can trade her in for a cheap tv or smartphone at Walmart.

Dr550 - 10/15/2013 6:10:38 PM

+1 Boost

Tell that to the French auto unions that want to work 30 hours a week, have 2 hour lunch/coffee breaks and get 6 weeks paid vacation. The Chinese will work 50 hours per week at 25% of what the French want. Peugeot has been on life support for years.

Agent009 - 10/16/2013 9:32:56 AM

+1 Boost

You have a point. The work ethic in France is rather "unique" compared to the rest of the world.