Peu­geot to raise $1.3B for al­liance with GM

The Washington Times Daily - - Business -

PARIS | French car­maker PSA Peu­geot Citroen an­nounced Tues­day it is look­ing to raise 1 bil­lion eu­ros ($1.3 bil­lion) in new cap­i­tal to fund its tieup with U.S. gi­ant Gen­eral Mo­tors.

The com­pa­nies, which are strug­gling in Europe’s fiercely com­pet­i­tive, over­sup­plied car mar­ket, said last week that shar­ing ve­hi­cle plat­forms and pool­ing the pur­chas­ing of com­po­nents and ser­vices will save them $2 bil­lion a year within five years. The ben­e­fits are ex­pected to be split roughly equally.

In early morn­ing trad­ing on the Paris bourse, the com­pany’s shares fell 6.5 per­cent to (euro) 13.295 ($17.43).

Peu­geot said that it and GM had al­ready agreed to take 31 per­cent of the shares is­sued.

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