Peugeot News Update: Peugeot And Dongfeng May Be Set To Unite
Peugeot News Update: Peugeot And Dongfeng may be set to unite. GM’s Steve Girsky suggested that a possible partnership of the auto giants might happen.
Mr Grisky said that he realised that the impact of a merger of this sort would, to a large extent, be dependent on the influence that Dongfeng had in its home country of China. The matter of the sale of any vehicles in China was another consideration as at present the joint venture partner of GM in China, is SAIC Motor Corporation. At present the situation is that talks had taken place between Peugeot and a consortium led by Dongfeng although there had been no conclusive results from this as yet.
At present the situation is that GM have declined to make any further investment in the French car maker and Mr Grisky confirmed that this was still the position. Apart from those members of the Peugeot family who are also shareholders GM is the next biggest shareholder in the company. Mr Grisky explained that GM had originally acquired a seven per cent share of Peugeot not because they wanted to exert influence on the carmaker but rather because they wanted to help with raising capital that was needed at that time. It is not clear whether or not GM would be prepared to have the share that they hold in PSA diluted and Mr Grisky would not comment on this.
A strengthening of the brand in Europe and the fixing of the ailing GM operations is obviously a priority and GM and PSA are in collaboration in the production of 2 vehicles in the mini van category. Production will start in 2016. Meanwhile there are other products that have not been precisely identified by Mr Grisky but that will be marketed largely in Europe. They are also under discussion. The European unit of GM has largely been loss making in recent years and has become a focus for investors with the public launch of the automaker in the autumn of 2010. This, it is hoped, will result in a much-needed shot in the arm after the last thirteen years of recorded losses.
Peugeot News Update
Mr Grisky said of the European market, that had hit a twenty year low earlier in 2013, that he thought it had now ‘bottomed out’ although GM was not expecting that there would be any sign of a significant volume recovery for another few years.
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