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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