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General Motors will sell off their 7 percent stake in PSA, but will continue joint developing select vehicles and technologies. In a statement, GM’s Steve Girsky said
“Our equity stake was planned to support PSA in their efforts to raise capital at the time of the creation of the GM and PSA alliance, and that support is no longer needed,” said GM Vice Chairman Steve Girsky. “The alliance remains strong with our focus on joint vehicle programs, cross manufacturing, purchasing, and logistics. We’re making good progress while remaining open to new opportunities.”
GM and PSA will continue to develop a small MPV type car and a small crossover, while working together on commercial vehicles.
18 Comments on “GM Selling PSA Stake...”
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And how much was lost in this misguided investment?
All depends on how much they are able to sell it for. The share price is roughly the same today as when they bought it, though. At worst I’d expect a hit in the low tens of millions of dollars.
In other news…GM plans to repurchase Hughes Aircraft and EDS.
I know that you are pulling my leg this, but isn’t Hughes Aerospace where OnStar originated?
Yes, I believe that you are correct.
Wow alot of moves being made by RenCen in the span of a few days.
Well, GM stock’s at $40.15. Lots of moves get the big boys all excited that they’re finally “doing something.”
“And how much was lost in this misguided investment?”
It wasn’t an investment. It was a charitable donation similar to the donation to Fiat.
Touche’
A day after the Feds sell the stock? Oh no, no rigging here.
Stumpaster — I don’t understand what you are implying?
“Our equity stake was planned as a political pay-off to PSA for pulling their operation out of Iran”
this investment was only to provide cash in order to alleviate difficulties for agreeing to Iran sanctions. oh for the games we play…
now that the Iranian embargo is unwinding GM will divest from Peugeot, who can now can go back to selling their wares to the Imams, Mujahideen, Mullahs, and Sheiks. meanwhile the investment banksters will take their customary hundred million in tribute, commonly referred to as investment advice. GM is a sacrificial cow to these blood sucking vultures who grab the cash via Board representation. God forbid the capital is distributed to ordinary shareholders.
Buickman
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The iranian connection is the only explanation I can think of.
Oh boy. GM loves sinking money into dead-end European projects and then getting out. The list so far: Saab, Fiat, PSA, Chevy-Daewoo.
GM will probably break even on the stock sale, no blood no foul!
They still claim a $1.2B/year savings will be realized by the joint purchasing activity, which trivializes the investment in PSA stock..
Well there are just 2 options i think:
1.Iran connections- this move was just solely on getting Peugeot out of Iran and now probably GM themselves will try to sell their cars there in near future
2.Dongfeng deal-they said they have no issues with this, but fact is GM´s partners in China are SAIC and FAW another giants, especially SAIC is huge partner for GM and now Dongfeng being investor in PSA + GM too it makes things complicated so they let PSA go
By the way i believe GM invested in PSA in worst possible time with EUR market contracting to lowest numbers in 2 decades + PSA pulling out of Iran – their No.1market outside EU at that time, now if we look at future – European market will grow in 2014-15-16 so PSA should grow in Europe too, in China they are getting bigger each year + very possible is scenario with IRAN comeback so PSA is getting back to becoming again bigger player -stronger player at global level so fact is GM invested in worst possible years for PSA, with PSA it can´t be worse i believe.
Barra, Ammann, and NADude got promoted, but Girsky is being shown the door. Anyone still wondering why?