Business

In short – GM acquires 7% of Peugeot

Frankfurt – The U.S. automaker General Motors and French carmaker PSA Peugeot Citroenannounced yesterday the creation of a “global strategic alliance” based primarily on the sharing of production platforms and the establishment of a joint venture purchasing products and services with a combined capacity of 125 billion USD.

Under this alliance, GM will take a 7% interest in Peugeot, which will undertake a capital increase of around 1 billion euros. The American will become the second largest shareholder of the French, behind the Peugeot family. The alliance is intended to improve the profitability of both automakers and their competitiveness in Europe. The regional branch of GM has lost $ 700 million over the old continent last year.

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