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.
Show full PR text
GM Completes Sale of PSA Equity Stake

DETROIT, 2013-12-13 – General Motors Co. today announced it has completed the sale of its entire 7 percent stake in PSA Peugeot Citroen through a private placement to institutional investors. The private placement of 24,839,429 shares generated gross proceeds of €0.25 billion.

This announcement is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities and the offer of PSA shares does not constitute a public offering in any jurisdiction, including France.

The offer and sale of the PSA shares referred to in this announcement has not been, nor will be, registered under the United States Securities Act of 1933 (the "Securities Act") and the PSA shares may not be offered or sold in the United States absent such registration or an applicable exemption from the registration requirements of the Securities Act. There will be no public offering of the securities in the United States in connection with this transaction.

Any investment decision to buy shares in PSA must be made solely on the basis of publicly available information regarding PSA. Such information is not the responsibility of GM and has not been independently verified by GM.

Release, publication or distribution of this press release is forbidden in any country where it would violate applicable laws or regulations.

About General Motors Co.
General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.


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  • 26 Comments
      Cruising
      • 1 Year Ago
      And the media will still find some way to paint the man on the left as some kind of hero. It's stuff like this that makes it hard for the true believers in GM, you know folks like Ed, Mark etc..
      thumerzs
      • 1 Year Ago
      Why is it when these multimillionaire execs lose m(b)illions on really stupid ideas, they're still rewarded their bonus money and profusely thanked for "saving the company" and yet the guys and gals engineering and screwing the cars together always get blamed for being overpaid if the company loses any money?
      Fen
      • 1 Year Ago
      It's the American way. GM drives brands into the ground trying to force them to repackage their products, to use their cheap ways. They think forcing everyone to put a different body and use the same interior is what a company needs to be saved, when it really needs access to bigger plants that can handle different form factors they produce. Cheaper construction of the same quality or better product, not a cheaper product. GM and Ford both do it. Look at VW, they buy a company, they give and take. They allow the company to repackage or build their own. Ford nearly drove landrover and jaguar into the ground. Look how well they have done since they were sold and given their freedom back. SAAB is starting to look bright now it has its freedom back, ad I bet PSA will bounce back fine. It's a shame opel are not given more freedom, because I think they still have some ideas left in them. Ideas that would work in Europe.
        Sir Duke
        • 1 Year Ago
        @Fen
        Fen, you don't know what the hell you are talking about. When Ford bought Jaguar, the tooling in the factory was mostly pre-war. Yes, that war, WW2. Lucas (the Prince of Darkness) same guy who played the biggest role in ruining the british auto industry, provided the electrical and electronic parts for the Jaguars and Range Rover. Go back and look at their reliability records of that era. The best Jaguars in the US from that era, all had a Chevy small block motor in them. Jaguar: Ford built them new plants, fired Lucas (he was replaced by the same company that does the electrics for Lexus). The Ford built engines (which is still happening as we speak) made Jaguar and RR better vehicles. Ford just had too many balls in the air to give Jaguar the attention it deserved. Selling Jaguar off was best for both brands. Range Rover: Range Rover before BMW bought them in the mid-nineties, was still using a discarded 1970 Buick engine design, that they had bought 25 years earlier. A friend of mine owned a pre BMW RR, the PoS spent so much time in the shop, the mechanic became a family friend (was present at barbecues, birthday parties etc.). BMW kept RR long enough to pirate the 4WD technology, and unceremoniously dumped them once the X5 was ready for market. The best RRs were built under the Ford ownership to today. RRs are still powered by Ford built engines.
        Kory James
        • 1 Year Ago
        @Fen
        Well said Chris. Seems most don't realize, or conveniently forget that without Ford, there'd be no JLR and Aston Martin if Ford hadn't stepped in.
        360_AD
        • 1 Year Ago
        @Fen
        In the case of GM, you're correct for the most part. In Ford's case, you're completely wrong.
      churchmotor
      • 1 Year Ago
      GM investing in other companies. Isuzu - Dead Saab - Dead Suzuki - Dead Remember the Billions they had to give up to FIAT and on and on. Next Bailout in 2-3 years.
      i.own.your.ass
      • 1 Year Ago
      GM needs not to worry....the 50 mil loss was paid by the beloved US government
      Kory James
      • 1 Year Ago
      GM sucks.
      Aurio Salimonne
      • 1 Year Ago
      Really,and that's news?.....Opel need to have free hand again on building a car,like the Omega,Ascona,Calibra and even the ugly Tigra,even the soft sprung Cavalier (Europe) was a good car,the main problem back then was that not even the then president Royer Smith care,he was tu busy buying other companies and Miss Bara (the new CEO was his right hand person?) If they put more and more effort and really good ideas Opel can take on VW,but I just dream (wish to own a LotusOmega Carlton,Calibra Turbo or even and old Kaddet like a 1964 pr 65)
      jesscott
      • 1 Year Ago
      Government Motors keeping up with it's business model of "who cares if we loose money, the taxpayers will bail us out". Eventually GM will come so unglued from it's unsound business practices to the point that it can't be bailed out anymore, then market forces will give us back a company that is lean and mean and ready to do business the right way.........for profit.
      mustsvt
      • 1 Year Ago
      This was doomed from the start. GM had to pay billions to extract itself from a similar disaster with Fiat pre BK. The fact that they did not learn their lesson then is the more ominous sign that there is still plenty of the "old" GM left.
      gilead82
      • 1 Year Ago
      But that's ok, it's not their money. Besides, they figure they save US taxpayers $49.5 billion, so they can walk away from this with a good feeling all the way around (even thought they're not paying us back). Please... Wish they woulda let 'em fend for themselves. Maybe then a recovery would've meant something tangible to them.
      • 1 Year Ago
      [blocked]
      dave
      • 1 Year Ago
      Even Chrysler was smart enough to get out of the French automotive business long ago.
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