GM May be Forced to Write Down PSA Peugeot Citroen Investment, but will Hold on to the Alliance

Looking for a way to fix its ailing European operations, which was the only ointment in its crown in 2011 when it regained the number one spot in world car sales, General Motors formed an alliance with PSA Peugeot Citroen last March.

On paper, it was a win-win situation since Opel/Vauxhall and the two French carmakers would share development and parts purchasing costs and make the best of their plants’ capacity. For both groups it was probably the only way to stop bleeding money in the declining European market.

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