GM Selling PSA Stake
by TTAC Staff
December 12th, 2013 1:17 PM
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General Motors will sell off their 7 percent stake in PSA, but will continue joint developing select vehicles and technologies. In a statement, GM’s Steve Girsky said
“Our equity stake was planned to support PSA in their efforts to raise capital at the time of the creation of the GM and PSA alliance, and that support is no longer needed,” said GM Vice Chairman Steve Girsky. “The alliance remains strong with our focus on joint vehicle programs, cross manufacturing, purchasing, and logistics. We’re making good progress while remaining open to new opportunities.”
GM and PSA will continue to develop a small MPV type car and a small crossover, while working together on commercial vehicles.
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Oh boy. GM loves sinking money into dead-end European projects and then getting out. The list so far: Saab, Fiat, PSA, Chevy-Daewoo.
GM will probably break even on the stock sale, no blood no foul! They still claim a $1.2B/year savings will be realized by the joint purchasing activity, which trivializes the investment in PSA stock..
Well there are just 2 options i think: 1.Iran connections- this move was just solely on getting Peugeot out of Iran and now probably GM themselves will try to sell their cars there in near future 2.Dongfeng deal-they said they have no issues with this, but fact is GM´s partners in China are SAIC and FAW another giants, especially SAIC is huge partner for GM and now Dongfeng being investor in PSA + GM too it makes things complicated so they let PSA go By the way i believe GM invested in PSA in worst possible time with EUR market contracting to lowest numbers in 2 decades + PSA pulling out of Iran - their No.1market outside EU at that time, now if we look at future - European market will grow in 2014-15-16 so PSA should grow in Europe too, in China they are getting bigger each year + very possible is scenario with IRAN comeback so PSA is getting back to becoming again bigger player -stronger player at global level so fact is GM invested in worst possible years for PSA, with PSA it can´t be worse i believe.
Barra, Ammann, and NADude got promoted, but Girsky is being shown the door. Anyone still wondering why?