Let's face it, even when they go well, partnerships rarely go as planned. Almost eight months after General Motors spent $423 million to snag seven percent of Peugeot, we on the outside are still wondering what the plan is. When the tie-up was announced, the main benefits were listed as purchasing power and platform sharing, and only a month after that, a deeper collaboration was discussed that would involve development of a dual-clutch transmission and a small car for Latin America.

We don't know what's come of it other than a potential write-down and Peugeot continuing to take a beating, but Reuters reports that the first phase of the venture is complete and now the two companies are working on more involvement for the second phase. A French newspaper report says one option for advancement would be the two companies becoming 50-50 partners, with GM kicking in more money for the privilege of doing so. Neither side would comment, but according to one Reuters source, the options on the table have also included "selling Opel to Peugeot, buying Peugeot's automotive business or putting them all together in a new entity."

If Peugeot bought Opel or vice versa, that would make sense – but only for the seller, who could wash his hands of the misery. The buyer would then have two poorly performing brands with deep structural problems, huge cash requirements and two national governments chaperoning its moves. We're not sure how the other possibilities mentioned could help Peugeot or Opel out of their quandaries, but we know something has to happen so it's likely we'll hear more soon enough.


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    • 1 Second Ago
  • 21 Comments
      Jacob Holmén
      • 2 Years Ago
      You'd have to be seriously fuckin' stupid to throw more money into the GM/PSA venture, but then again, the venture happened in the first place. Can't see PSA buying Opel, they're way to smart for that, but GM buying PSA... GM is definitely stupid enough to let that happen. /excessiverant
      • 2 Years Ago
      [blocked]
      john
      • 2 Years Ago
      Now that GM knows the federal government will never let them go under why wouldn't they make these risky investments? If it doesn't work out the taxpayer is the one who will cover the loss.
      throwback
      • 2 Years Ago
      I'm going out on a limb here but, I don't think GM management is dumb enough to buy PSAs car business.
      • 2 Years Ago
      [blocked]
      mustsvt
      • 2 Years Ago
      The old GM had to spend billions to extract themselves from a partnership with Fiat, now they are stupid enough to even contemplate this with their problems with Opel and with majority government ownership? Crazy!
        jw10588
        • 2 Years Ago
        @mustsvt
        i think you should do your research on your statement...GM paid back the Government and they are currently number two in sales in the WORLD.
        • 2 Years Ago
        @mustsvt
        [blocked]
        mustsvt
        • 2 Years Ago
        @mustsvt
        @jw..."GM Paid back the government..." Are you KIDDING ME?? To Quote Yahoo Finance: At GM, the government is $27 billion in the hole on a $49.5 billion bailout. Although taxpayers own 26.5 percent of GM stock, the shares are trading for less than half the $53 price needed for the government to recoup all its money. http://finance.yahoo.com/news/why-matters-auto-bailout-122429090.html
      Avinash Machado
      • 2 Years Ago
      Why is Rick so obsessed with RWD cars from GM and Ford?
      mdrieling
      • 2 Years Ago
      First of all this is not from a source at GM/Opel or PSA it's from an unnamed source to a reporter at Reuters. Second, why would you buy a company that can't make a profit? PSA only duplicates GM Europe's portfolio. They can offer nothing but production capability and access to different suppliers. Production capability is not needed and GM is large enough that they don't need help getting low proces from a supplier. I can only hope that GM is not this stupid. BTW... the US Treasury Department still owns 26% of GM.
      Julius
      • 2 Years Ago
      I can see GM keeping Opel as a design center, where that part at least has some value. However, GM doubling-down on its current money-losing European operations by buying Peugeot and all the associated issues of having to deal with not one but TWO European governments is a huge red flag to me.
      richsra
      • 2 Years Ago
      The combination of Opel and PSA could make sense if politics were not an issue. Without French and German government whining about plant closings, OpelPSA could develop the basic architecture of small cars together, including engine and transmission and combine production into one assembly plant and run it at maximum operating efficiency. With higher volumes and economies of scale (Opel and PSA cars sharing parts and architecture) they can make money even in an anemic European car market. Will it happen? What are the chances that the French and German government will allow the closure of a French and German plant to transfer the production to a plant in Spain to export the cars back to them?
      bingo
      • 2 Years Ago
      Bob King, had been appointed to the supervisory board of Opel AG, General Motors's loss-making German unit. I could see it happening.
      quuppa70
      • 2 Years Ago
      isnt there enough similar cars made by Peugeot/Citroen there is no need to add third variant to european markets. Unless PSA doesnt bought out the whole Opel (and reduce production capacity) this is stupid move.
        • 2 Years Ago
        @quuppa70
        [blocked]
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