GM: 'No intention' of investing more cash in Peugeot

  1. Welcome to GM Inside News Forum – General discussion forum for GM

    Welcome to GM Inside News Forum - a website dedicated to all things GM.

    You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, at no cost, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, Join GM Inside News Forum today!
     
+ Reply to Thread
Page 1 of 3 123 LastLast
Results 1 to 15 of 34

Thread: GM: 'No intention' of investing more cash in Peugeot

  1. #1
    GMI Canada Editor Premium Member ne_one's Avatar
    Join Date
    Sep 2008
    Location
    St. Catharines, Ontario
    Posts
    9,548
    Thanks
    90
    Thanked 61 Times in 38 Posts

    GM: 'No intention' of investing more cash in Peugeot

    GM: 'No intention' of investing more cash in Peugeot
    Automotive News
    February 14, 2013

    General Motors is "not betting on" an uptick in European auto demand later this year and has no plans to provide additional funds to its struggling partner in the region, France's PSA Peugeot Citroen, GM's CFO said Thursday.

    "We have no intention of putting more cash into Peugeot," GM CFO Dan Ammann told reporters on Thursday during a briefing for the company's fourth-quarter results.

    GM booked a $220 million charge to fourth-quarter earnings to reduce the value of its about 7-percent stake in PSA to fair market value after the French company this week reported a $6.74 billion annual loss for 2012. It is PSA's biggest loss ever.

    GM CEO Dan Akerson on Thursday described relations with PSA Peugeot Citroen as good.

    GM acquired a 7 percent stake in PSA in March 2012 as part of a budding alliance but warned in August it may have to write down the investment as the European auto market weakens.

    Full article at link.

  2. Remove Advertisements
    GM Inside News
    Advertisements
     

  3. #2
    1.8 Liter ECOTEC
    Join Date
    Jul 2003
    Posts
    31
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: GM: 'No intention' of investing more cash in Peugeot

    Europe has a boat load of money problems to start with so now is not the time to be investing.

  4. #3
    4.4 Liter Supercharged Northstar
    Join Date
    Jan 2003
    Posts
    2,860
    Thanks
    33
    Thanked 11 Times in 10 Posts

    Re: GM: 'No intention' of investing more cash in Peugeot

    Man, just another one of GM's "WTF were they thinking" moves.

  5. #4
    2.8 Liter Turbocharged V6
    Join Date
    Dec 2008
    Posts
    828
    Thanks
    0
    Thanked 1 Time in 1 Post

    Re: GM: 'No intention' of investing more cash in Peugeot

    Quote Originally Posted by usa1 View Post
    Man, just another one of GM's "WTF were they thinking" moves.
    Absolutely. GM at its core has been a collection of bad decisions. A company that was once so great it commanded about half the u.s. auto sales. To this day still produces some of the biggest wtf moments in automotive history. Look no further than the Fiat tie up and compare it to this marriage. GM appears to be a butter face car company who hooks up with anybody that's still standing after the bar closes.

  6. #5
    News Contributor BlackGTP's Avatar
    Join Date
    Jul 2008
    Location
    Connecticut
    Posts
    5,081
    Thanks
    161
    Thanked 372 Times in 171 Posts
    My Ride
    2013 Cadillac ATS - Black

    Re: GM: 'No intention' of investing more cash in Peugeot

    Sounds like GM's investment in Fiat where they had to write down the investment and then eventually extorted a billion or so from GM. Hopefully GM has some kind of legal protection from similar extortion from the French.

    But don't forget everyone, this is just a paper loss. It only becomes real money if GM actually sells the shares. Otherwise the value of the partnership is still there - cost savings of shared purchasing and shared chassis, etc.

  7. #6
    emh
    emh is offline
    6.2 Liter LS3 V8 emh's Avatar
    Join Date
    Mar 2007
    Posts
    3,243
    Thanks
    0
    Thanked 4 Times in 2 Posts

    Re: GM: 'No intention' of investing more cash in Peugeot

    Quote Originally Posted by ne_one View Post
    [B][SIZE=4]"We have no intention of putting more cash into Peugeot," GM CFO Dan Ammann told reporters
    Mr. Ammann, the real question is why you put any cash into PSA at all in the first place.
    "The irony of the Information Age is that it has given new respectability to uninformed opinion" -- John Lawton

  8. #7
    6.2 Liter LS9 Supercharged V8 Ed753's Avatar
    Join Date
    May 2005
    Location
    Michigan
    Posts
    5,327
    Thanks
    673
    Thanked 263 Times in 176 Posts
    My Ride
    2013 Chevrolet Silverado LTZ

    Re: GM: 'No intention' of investing more cash in Peugeot

    Come on guys, its going to be different this time! We got smart people running GM now!


    Past: 11 Ram 13-11; 10 Commander 13-10; 08 Sierra 11-08; 07 Rendezvous 10-07; 05 Ram 08-05; 04 Grand Cherokee 07-04; 03 F-150 05-03; 01 Silverado 03-01; 00 Jimmy 04-00; 99 Sierra 01-99; 96 Mustang GT 01-98;97 Ram 99-96; 96 Jimmy 00-96; 90 Escort GT 96-92; 89 Ranger 96-91; 84 Omni 92-89; 76 Malibu 90-89; 78 LeMans 94-88; 85 Escort 88-87; 82 Lynx 93-86; 75 Sierra 87-85

  9. #8
    6.0 Liter L76 V8 70AARCUDA's Avatar
    Join Date
    May 2011
    Location
    Tucson, AZ
    Posts
    2,342
    Thanks
    12
    Thanked 80 Times in 59 Posts
    My Ride
    Cruze LTZ/2011/Gold Mist

    Re: GM: 'No intention' of investing more cash in Peugeot

    Hm-m-m-m, sounds like somebody in Finance finally remembered the phrase: "...good money, after bad [money]..." (wink,wink)?
    2011 Chevrolet Cruze LTZ 1.4LT 6A
    2009 Pontiac Vibe 1.8L/SFI 4A
    2004 Pontiac Vibe 1.8L/MFI 4A

    1971 Dodge Charger 318 3A
    1970˝ Plymouth AAR 'Cuda 340/6BBL 4M
    1968 Dodge Charger 383 3A
    1967 Plymouth Barracuda Formula S 383 4M
    1965 Plymouth Barracuda Formula S 273 4M

  10. #9
    Firebird Concept (the turbine one)
    Join Date
    Dec 2003
    Location
    Dearborn, MI
    Posts
    14,995
    Thanks
    0
    Thanked 1 Time in 1 Post
    My Ride
    FORD

    Re: GM: 'No intention' of investing more cash in Peugeot

    Are the same people responsible for the decision to pay Fiat to leave also responsible for the decision to welcome PSA with open arms?

  11. #10
    4.6 Liter Northstar V8 bmwboy2007's Avatar
    Join Date
    Jan 2003
    Location
    Soviet Union
    Posts
    1,930
    Thanks
    7
    Thanked 125 Times in 80 Posts

    Re: GM: 'No intention' of investing more cash in Peugeot

    "No intention"

    Now there's some weasel words.

  12. #11
    4.6 Liter Northstar V8 LetsRace's Avatar
    Join Date
    Sep 2012
    Location
    Puerto Rico
    Posts
    1,945
    Thanks
    290
    Thanked 361 Times in 235 Posts
    My Ride
    2004 Grand Prix GT

    Re: GM: 'No intention' of investing more cash in Peugeot

    A GM/VW alliance would be a very powerful and interesting alliance.

  13. #12
    4.4 Liter Supercharged Northstar
    Join Date
    Aug 2012
    Location
    Americas
    Posts
    2,742
    Thanks
    366
    Thanked 224 Times in 139 Posts
    My Ride
    a car

    Re: GM: 'No intention' of investing more cash in Peugeot

    All is not lost. The upside of joint platforms is HUGE!! for GM. But for now it looks like a bad decision.

  14. #13
    R2-D2 Astromech Droid mgescuro's Avatar
    Join Date
    Jan 2003
    Location
    San Francisco Bay Area
    Posts
    38,530
    Thanks
    358
    Thanked 502 Times in 304 Posts

    Re: GM: 'No intention' of investing more cash in Peugeot

    Quote Originally Posted by emh View Post
    Mr. Ammann, the real question is why you put any cash into PSA at all in the first place.
    Rats. You beat me to it.

    2010 Mercedes E350
    2000 Saab 9-5 Aero
    1995 Mercedes C280
    1994 Jaguar XJ6





    Uniquely, San Francisco



    SAN FRANCISCO 2020!! ... LAKE TAHOE 2022!!

  15. #14
    Banned
    Join Date
    Feb 2013
    Posts
    253
    Thanks
    0
    Thanked 1 Time in 1 Post

    Re: GM: 'No intention' of investing more cash in Peugeot

    Peugeot lost over 6 billion last year. GM was stepping in until the French government did with even deeper pockets.

  16. #15
    7.0 Liter LS7 V8
    Join Date
    Dec 2004
    Posts
    4,427
    Thanks
    35
    Thanked 78 Times in 56 Posts

    Re: GM: 'No intention' of investing more cash in Peugeot

    Quote Originally Posted by LetsRace View Post
    A GM/VW alliance would be a very powerful and interesting alliance.
    VW doesn't team up, they acquire.

    Quote Originally Posted by mchicha View Post
    All is not lost. The upside of joint platforms is HUGE!! for GM. But for now it looks like a bad decision.
    Exactly. PSA has to remain solvent for this deal to work out for GM.

  17. Remove Advertisements
    GM Inside News
    Advertisements
     

Quick Reply Quick Reply

Register Now

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.


Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may post replies
  • You may not post attachments
  • You may not edit your posts
Powered by vBadvanced CMPS v4.1.2