French President Francois Hollande Expects Peugeot’s Executives and Shareholders to Find Solutions image

Today, June 28th, French President Francois Hollande said that the government can offer its point of view only after Peugeot’s executives and shareholders will set out plans for the automaker’s future.

“First, it’s up to the shareholders and Peugeot’s managers to comment,” Hollande told journalists after an EU summit in Brussels. “I leave it up to the shareholders and the managers to make a statement. Then the state can make a statement.”

Yesterday, Reuters published a report according to which the Peugeot founding family is wiling to give up control on the close-to-end French automaker, as it tries to revive strategy for a closer tie-up with GM, the US automaker which recently said it has no plans to make further investment in the troubled company.

“We have no intention of investing additional funds into PSA at this time,” a GM spokesman said in an email on Thursday.

The Peugeot family, which currently has a 38.1% shareholder vote, is willing to give up the company if necessary. The family has been the main problem why the company has not succeeded, as their jealously guarded the automaker’s independence.

Analysts predict that in 2013 the auto market in Europe will shrink for the 6th consecutive year, and a slight recovery is expected in the final quarter. Peugeot’s sales in May dropped 13%, Renault fell 10% and GM and Fiat both reported a drop of 11%.

Source: yahoo.com