General Motors bought a seven-percent stake in Peugeot earlier this year for €320 million ($430M U.S.), the obvious aim being the $2 billion in savings from synergies like shared platforms, components and joint purchasing power. Yet the trouble that made the partnership worthwhile for Peugeot has only got worse since the agreement was signed: it had to issue stock for GM to buy, depressing its share price. It later sold its Paris headquarters to raise money, but its plan to cut jobs and reduce overcapacity – the European industry's number one bugbear – has been repeatedly nixed by the French government.
Autoblog , GM may decide to write-down slumping Peugeot shares
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itcrowd, GM may decide to write-down slumping Peugeot shares
