GM Vive Chairman Reiterates Company’s Plan Not to Invest in Peugeot image

GM Vice Chairman Steve Girsky reminded reporters that the automaker will not make further investment in Peugeot and called reports about expanding ties as simple distractions.

“All I want to do is get the programs, the current programs, to work,”Girsky said in an interview at Bloomberg News headquarters in New York.

Reports in French newspaper said that the French government is looking to hire a bank for advice about Peugeot, which could mean a further alliance with GM or Chinese Dongfeng. In 2012 GM paid 320 million euro for the 7% stake in Peugeot, part of the partnership which includes joint vehicle manufacturing and parts purchasing aimed at improving the situation in Europe for both automakers.

Girsky’s attributions include ending losses in Europe for the automaker by mid-decade and rebuilding Opel’s image. During the interview yesterday, he also referred to CEO Dan Akerson comments made in June in Shanghai, that GM does not plan to make more investments in Peugeot.

“If we see something change we will re-evaluate that,” Akerson said. “It’s kind of steady as she goes.”

In 2012 Peugeot reported a loss of 5.01 billion euro and an operating deficit of 576 million euro. The automaker’s sales dropped 9.8% during the first six months of the year. Still, Girsky believes that the French automaker is viable, taking into consideration its projects with other companies, such as Toyota and Ford.

“Peugeot is a very good company,” the GM executive said. “They know how to operate when capital is tight because that’s what they’ve done.”

Source: Bloomberg