GM recently announced it does not plan to make further investments in its struggling partner PSA Peugeot Citroen.
“We don’t have any intention of investing additional funds into PSA at this time,” Chief Executive Officer Dan Akerson told a media briefing in Shanghai. “If we see something changes, we’ll evaluate that.”
Peugeot, which plans to cut 8,000 jobs in France and close a plant near Paris, will have to raise funds through a share sale as it continues to burn cash in a market which shows no sign of recovery. GM, currently owns 7% of Peugeot and in February the two automakers signed a broad-based alliance and GM wrote down almost half of its $423 million investment in the car maker.
Read Article