PSA PEUGEOT and General Motors yesterday confirmed their long-trailed plans for a strategic alliance that the firms say will create $2bn in synergies within five years.
GM will take a seven per cent stake in struggling Peugeot, making it the French firm’s second-biggest shareholder, and the companies will pool research, development and supplier relationships, they said in a statement.
Peugeot plans to raise €1bn in a rights issue in connection with the tie-in. The Peugeot family’s holding company will invest €150m in the capital hike, remaining the carmaker’s largest shareholder.
“This alliance means more products and technology in more countries. We expect to learn from PSA’s experience, especially in smaller cars,” GM’s chairman and chief executive Dan Akerson said in a conference call.
“Just to be clear, this is an alliance, not a merger, and doesn’t impact on measures we were already taking.”