Rumors have circulated since the presentation of the results of Peugeot SA by CEO Philippe Varin about a partnership or an alliance between the the company and another big maker. Minister of Labour, Xavier Bertrand, confirmed that he had been advised of negotiations between General Motors and PSA for a strategic alliance, although nothing has been signed yet.

Plagued by financial difficulties, partly due to high debt and a European market (PSA has completed over 60% of new vehicle sales in Europe in 2010) sluggish, PSA, which includes Peugeot and Citroën, but also the automotive supplier Faurecia, Gefco logistics company and the bank PSA Finance, which funds the purchase of vehicles from both brands, said he was interested in an alliance with one of his counterparts in January, to condition to find the right partner.

The turnover of the second European manufacturer has increased by almost 7% in 2011 to stand at nearly 60 billion euros and 3.55 million vehicles sold (down 1.5%). Far, far away sales from General Motors (over 9 million vehicles sold) which took over first place for global manufacturers to Toyota. The reconciliation between the two manufacturers, after those of Renault / Nissan and Fiat / Chrysler, would allow both companies to achieve economies of scale, provided that the U.S. government, which owns 30% stake in the Detroit giant, gives his agreement.

The announcement of the judgment of the sports program of endurance Peugeot in January, but also the sale of part of the real estate group (the sale of the historic seat of Brand Avenue de la Grande Armee in Paris n is not excluded) show that the firm knows the lion a difficult financial situation while General Motors shows a profit of nearly $ 6 billion. Certainly, PSA has generated a (low) earnings of 600 million euros in 2011, but the automotive industry is in deficit.

The declarations of Minister for Labour and PSA have been welcomed by the stock market with a jump of over 12% of the title at closing after reaching 20% ​​during the session. The question is whether the negotiations will result because PSA is a breakdown of talks with Japan's Mitsubishi two years ago. To be continued ...

Cecile Bonardel

Photo: Le Mans (Sarthe, FRANCE), CIRCUIT OF 24 HOURS, 24 HOURS OF LE MANS, Saturday, June 12, 2011, RACE. A reconciliation between General Motors (Corvette) and PSA (Peugeot-Citroen) is not excluded.