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