Peugeot shares leap as it talks to General Motors about an alliance
Thursday 23 February 2012
Shares in PSA Peugeot Citroen, the second largest car maker in Europe, surged yesterday on news that it was discussing an alliance with General Motors (GM) of the US, which could see the two companies take stakes in each other.
A deal is aimed at saving costs for both companies.
GM owns Vauxhall in the UK and Opel, and said last week it plans a restructuring announcement of its European operations in the next few months.
Peugeot, which reported a cash outflow of €1.65bn (£1.39bn) for 2011, and GM would share technology and jointly develop components for future models, if the strategic alliance is sealed.
A statement confirming talks with an unnamed car maker sent Peugeot shares up 12 per cent. The French labour minister, Xavier Bertrand, said he had been informed of the talks, and would seek to protect jobs.
"The logical thing for them to do would be to close plants," said Max Warburton, an analyst at Bernstein. "But they've not been able to do it independently, and there's no reason to think they could do it together."
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Doctors remove 80 teeth from boy's jaw
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
- 5 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
Syrian teenager Usaid Barho reveals how he escaped from Isis using a suicide vest
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...