Thursday, November 22, 2012
GM-PSA plans held up over finance bailout
The €7bn (£5.6bn) French government bailout of Banque PSA appears to have stalled plans for a 'strategic global alliance' between GM and PSA Peugeot-Citroën announced in February.
Although the scheme was to focus on manufacturing and design elements of PSA and GM, responsible for Vauxhall in the UK and Opel on the continent, conditions of the support for PSA's lending arm stipulate no French jobs would be lost at Peugeot.
This would put increased burden on Opel, based in Germany, to make cuts, stunting the partnership plans which already involved plant closures and staff reduction.
Both GM and PSA have been hit by the European slump in car retail with GM, which paid €400m for a 7% stake in PSA, announcing four vehicle programmes in conjunction with its French counterpart as part of a wider recovery plan of new models and engines.
DATED: 22.11.12
FEED: MF
