Wires

GM, Peugeot mull European joint venture -report

Share

PARIS, Oct 12 (Reuters) - General Motors and PSAPeugeot Citroen are working on plans for a Europeanjoint venture as they flesh out the carmaking alliance theyannounced earlier this year, La Tribune reported on Friday.

Detroit-based GM would place Opel in the 50-50 venture alongwith its French partner's core manufacturing division, accordingto the French online newspaper, which cited anonymous sources.

GM declined to comment. A Peugeot spokesman did notimmediately return calls seeking comment.

GM, which took a 7 percent stake in Peugeot as part of theoriginal alliance agreement, would inject more cash into thejoint venture under the plan being considered, La Tribune said.

But the proposal is likely to run into objections from theFrench government and has yet to be submitted to the Peugeotboard, the report added.

(Reporting by Laurence Frost; Editing by James Regan)

((laurence.frost@thomsonreuters.com)(+33 1 49 49 56 83)(ReutersMessaging: laurence.frost.thomsonreuters.com@reuters.net))

Keywords: GM PEUGEOT/JV