Today, November 14th, Germany’s Manager Magazin reported that PSA Peugeot Citroen would be in talks with Tata Motors to create an alliance.
The magazine also said that Peugeot chief executive Philippe Varin wants to have an alternative in case the alliance with GM and its European Opel division shall collapse. Reuters reported on Tuesday, November 13th, that GM and Peugeot have given up talks on a deeper tie-up due to the French automaker’s government-backed bailout and worsening finances.
Reuters contacted Tata regarding its possible alliance with PSA Peugeot Citroen but the company denied the report.
“That is absolutely incorrect,” Tata spokesman Debasis Ray told Reuters.
Last month PSA Peugeot Citroen has secured a 7 billion euro ($9 billion) states guarantee for Banque PSA Finance, its finance division, as it promised to give up its plans to close a plant in France and cut 8,000 jobs in the country.
The French government said it would help Peugeot’s lending arm, Banque PSA Finance, only if its agrees to cancel the planned job cuts and the closing of the plant near Paris, and also to name a government and labor union representatives on its board. The automaker agreed with all the terms.