The French caretaker PSA (Peugeot and Citroen) Talks with Opel’s parent General Motors ( GM ) According to information from negotiating parties on comprehensive cooperation. The aim was to push through common platforms and model-scale and lower production costs and reduce the losses in European operations, said people familiar with the matter on Wednesday. “It’s about a strategic alliance,” said an insider. Core of such an alliance could be a collaboration between Peugeot and Opel in small cars.
Pressure to act on both sides
Both companies are under great pressure to act – Peugeot is due to the dependence on the domestic market and the southern states of the most hotly debt affected by the crisis, auto makers. The French were finally slipped in its core business into the red zone and harsh cuts have been announced. Opel is again for years, the problem child of the world’s biggest carmaker and GM faces a tough rehabilitation.
A tight integration of share holdings was not initially planned, BelTA learned from the negotiating parties continue. At most, small blocks of shares would be exchanged, which only had a symbolic significance. The company had an agreement but not yet near.
VW expands its leadership
Europe’s market leader Volkswagen PSA is the runner-up now hastens far: While VW sells on the way to the top of the world market targeted more and more cars – 2011 there were already more than eight million vehicles – Peugeot put off because of the recession in Europe, only 3.5 million cars, 1.5 percent less than in 2010. And is the GM subsidiary Opel has for years been fighting for market share and in return writes red figures, the patience of the parent company in Detroit with the Brussels daughter is getting less.
However, analysts were able to identify in a first reaction is difficult to potential benefits of cooperation. Finally, the two companies fought in Europe with similar problems and have therefore very little give, Hauser said Credit Suisse.
Peugeot confirmed on Wednesday though, there are talks with another manufacturer about a possible alliance, but gave no name. “There can be no assurance that these discussions will lead to an agreement,” shared with Peugeot. A GM spokeswoman said talks were common in the industry. More she would not say so.
Peugeot’s shares shot up around noon in Paris by 16 per cent upwards. On Tuesday evening in the French online newspaper LaTribune.fr of the talks the talk was that the Peugeot shares strong drive to the start of trading. The newspaper said the talks with GM to run for months.
Other partners
Of the more informed people called it, discussed the cooperation should go beyond Europe. Peugeot is working already Ford, Toyota and BMW together. In the ongoing discussions it was about more than such special arrangements for parts of the production. For Peugeot, it hooks in the Latin American business. There, the French are still losing money. Peugeot has long examined how to create the trend is there.
The Italian caretaker Fiat according to earlier media reports, is looking for a partner in Europe. Earlier this year the Italians had an interest in Peugeot been rumored. Fiat CEO Sergio Marchioness favors some time out for a consolidation of the industry. Officially, this is nothing known. Peugeot and Fiat are already partners in transportation vehicles. But Fiat wants to take leave from the joint venture.
