FIAT : We had no discussions with PSA for a possible alliance image

Fiat’s chairman John Elkann said the automaker was not among the investors sounded out by Peugeot’s founding family.

According to anonymous sources, the Peugeot family and CEO Philippe Varin have turned to GM, the 7% holder, after sounding off several potential investors, among which Chinese partner Dongfeng. The Peugeot family said that it will give up control of the automaker if this would bring consolidation in Europe and not closing plants there. Elkann said that he did not have talks with Peugeot over a possible alliance.

“As we’ve said before, certainly if we were presented with an interesting (partnership) opportunity, we would be open to considering it,” he said.

Last week GM said it will make no further investments in Peugeot, after anonymous sources said that the French automaker has asked the US company for financial help. As PSA Peugeot Citroen struggles with continuously falling sales in Europe, it has tried to convince GM to invest more money and increase its stake in the French company.

“Our position remains unchanged: We have no intention of investing additional funds into PSA at this time,” said GM spokesman Greg Martin in an email. “We will not comment on speculation.”