GM, Peugeot mull European joint venture -report

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

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

GM declined to comment. A Peugeot spokesman did not immediately return calls seeking comment.

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

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

(Reporting by Laurence Frost; Editing by James Regan)

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