Peugeot to raise $1.3B for alliance with GM
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.