General Motors to take over PSA- Peugeot Citroen

The struggles at the PSA Peugeot Citroen camp has been there for all to see over the past 24 months and now it seems it may all be a little bit too much for the French manufacturer. The state of the European car market seems to have affected the French firm more than most, as demand completely disintegrated.

A number of reliable automotive sources seemed to have expressed a dis harmony within the Peugeot Citroen camp as it seems the firm could cease to operate by the end of the year. The French firm are keen to attract interest as they continue to plan for the future and release models such as the Citroen C4 Grand Picasso. It seems that one party in particular keen to take over the brand, is the US firm of General Motors.

However, the Peugeot Citroen brand received a sizeable loan from the French Government not so long ago and it seems that any General Motors takeover would have to cooperate with the demands of the people in power. The loan came as a result of plans to close down one of the biggest operating factories within France. The French Government had a view of the plant being to vital in the countries economy in simply offered a loan to keep the factory open.

It seems that if the US company General Motors were to take charge, then a number of factory closures would have to take place as the firm would look to change the fortunes of the manufacturer. It is clear to see that changes are a must if the firm continues to struggle with operating capital as it now becomes a non profit organisation.

General Motors who of course own the Vauxhall brand here in the UK, will go back to basics with the French manufacturer and simply look to cut production and distribution costs along with various other cuts to get the Peugeot Citroen brand back into the green.