Filed under: Europe, GM, Earnings/Financials, Peugeot
The fling between General Motors and PSA/Peugeot-Citroën isn't kaput, but the flirting couple has separated its finances. Just a day after announcing its intention to divest itself of its seven-percent stake in the French automaker, GM had done so, getting 250 million euros ($342M US) for it. That would represent a loss of between $48 million and $71 million for the 21-month partnership.
It was a rocky romance, with the yin of a jointly developed compact platform and further integration overcome by the yang of a share writedown and Peugeot's need for a bailout from the French government. Even though they keep separate bank accounts now, the two companies will continue working together on cost savings through joint purchasing and products like a subcompact MPV and a compact crossover.
The original tie-up envisioned a ten-year term, so there's still time to make something of it. You can read the brief press release on the matter from GM below.
Continue reading GM stake in Peugeot sold in a day, GM loses millions
GM stake in Peugeot sold in a day, GM loses millions originally appeared on Autoblog on Mon, 23 Dec 2013 18:10:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsSource: http://www.autoblog.com/2013/12/23/gm-sells-peugeot-sake-loses-millions/
No comments:
Post a Comment