PSA And GM Are Doing It While Marchionne Watches

Bertel Schmitt
by Bertel Schmitt

When the stock markets close in Europe today, PSA Peugeot Citroen and GM should announce that they are going ahead with the plan of GM buying seven percent of PSA. That according to “sources with knowledge of the discussions” that talked to Reuters.

GM and Peugeot will pool R&D, vehicle platforms and technologies, Reuter’s sources say. PSA hopes to save $2 billion in 4 years through the deal. What GM is hoping is anybody’s guess.

In the morning, The Detroit News reported that Sergio Marchionne also would not mind taking a stake in PSA. Depending on how that announcement is coming along, all Sergio can do is stand and watch while GM and PSA are doing the alliance.

PS: After the close of the market, the deal was announced.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Buickman Buickman on Feb 29, 2012

    can someone tell me how much the investment banks are being paid for this deal on both sides? it's the same charade as when they stripped GM of cash as the banks took enormous fees for "advice" in NOT buying Nissan and Chrysler, let alone the billions siphoned off during the Fiat Fiasco. this corporate shell game is nothing more than a high level white collar con, you know the stuff guys named Bernie are famous for...Madoff and Ebbers.

  • Andy D Andy D on Feb 29, 2012

    other than Opel, what other presence does GM have in Europe

    • Charly Charly on Mar 01, 2012

      Opel/Vauxhall, Cadillac, Chevrolet and sometimes Corvette

  • Coach bryant Coach bryant on Mar 01, 2012

    "PS: After the close of the market, the deal was announced" i think that says a lot. (if they were really smart, they'd have waited 'til the weekend. of course they may have wanted to but had to stay ahead of the crack staff here at ttac!) they missed the suv boat in china and now jump in the europe end of the pool. have to give it to the union brass running things now. smart cookies.

  • Omnifan Omnifan on Mar 01, 2012

    Simply brilliant Sergio! The man is a genius!!! If GM was the only one interested in Peugeot, then the price would have been cheap. Enter Sergio. He doesn't want it, but why not sucker your competitor into thinking you do. Bid the price up, make them hurry and sign up. Then sit back and laugh as the whole thing goes fubar. Didn't that happen between Ford and GM on Jaguar? But then, GM snatched defeat from the jaws of victory by buying SAAB. What's not to like?

    • Windswords Windswords on Mar 01, 2012

      "Didn’t that happen between Ford and GM on Jaguar?" I remember that and was thinking the same thing. Bid the price up and then capitulate. Reminds me of the Dave character on "Storage Wars"!

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