GM said it expects sluggish demand in Europe this year and that it will make no further investments in its struggling partner PSA Peugeot Citroen.
“We have no intention of putting more cash into Peugeot,” GM CFO Dan Ammann told reporters during a briefing for the company’s fourth-quarter results.
After PSA Peugeot Citroen reported earlier this week a $6.74 billion annual loss in 2012, GM booked a $220 million charge for the fourth-quarter earnings to cut the value of the 7% stake in the French automaker to fair market value. Still, GM CEO Dan Akerson said that the relations with PSA Peugeot Citroen are ‘good’.
Last month, GM and PSA Peugeot Citroen announced that their three JV programs will be manufactured at the French automaker’s platforms. Last year the two companies revealed their alliance aimed at cutting European losses and sharing development costs. The GM-PSA alliance will aim at expanding in growing markets such as Russia and South America, and also create a fourth possible platform for EVs.
PSA Peugeot Citroen plans to manufacture a new family of minivans/crossovers which will replace the Opel Zafira and Peugeot 3008, while GM will develop successors for the Citroen C3 Picasso and Opel Meriva minivans, as well as Peugeot 2008 crossover.