GM said that it does no plan to further help PSA Peugeot Citroen, after anonymous sources said that the French automaker has asked the US company for financial help.
Peugeot spokesman Jean-Baptiste Thomas said, “We don’t comment on rumors, as we have always avoided doing with other rumors that have surfaced in past months.”
As PSA Peugeot Citroen struggles with continuously falling sales in Europe, it has tried to convince GM to invest more money and increase its 75% stake in the French company, but was refused, according to anonymous sources. One of the people said that GM did not find any reasons why it should make further investments in Peugeot.
“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.”
Peugeot’s sales in Europe have dropped 14% so far this year, more than any other automaker, as the car maker builds more than half of its cars in the expensive French plants. Peugeot spends around 200 million euro per month, an excruciating sum for the struggling automaker.