Following recent reports that Peugeot were in trouble and were looking for General Motors to step in and help, The United States automotive giant General Motors exclaimed last Thursday that the company had absolutely no intention of investing any further into the second largest car company in Europe, PSA Peugeot Citroen.
The French brand has had a rocky time of late and this could be a major step back if the allegations are true.
Peugeot allegedly approached General Motors in the recent months
Allegedly Peugeot had approached General Motors in the recent months, looking for an injection of money and an expansion of the 7% stake that General Motors already has in the Peugeot company. A spokesman for General Motors said recently, that the position of the company remains completely unchanged, General Motors have no intention of investing any additional funds into PSA at this time. He added that the company will also not comment on speculation.
Peugeot have faced a struggle after being affected by the eurozone debt crisis
The Peugeot company has been allegedly struggling lately, after being deeply affected by the eurozone debt crisis and after the collapse of the car market in Europe and the failure to be able to expand into emerging markets. It was also reported that the French company had also approached, Dongfeng, their Chinese partner, about taking a stake in the Peugeot company. Any of these stakes would certainly help the family’s desire to be able to scale back the voting share in the car group, which is heavily indebted, at 37.9% at the moment.
The Peugeot Citroen family and PSA refused to comment on any of these matters.
Lets hope things begin to pick up for the Peugeot Citroen company, as so many car manufacturers have already said that they are facing uncertain and hard times due to the current economic climate.