Peugeot Shares Surge On Speculation Of A Partnership With GM

Peugeot RCZ

Photo: NRMA New Cars via flickr

PARIS (AP) — Shares in PSA Peugeot Citroen, Europe’s second-biggest car manufacturer, surged after it said it was in talks with unnamed parties over possible industrial tie-ups.The company’s disclosure came amid speculation that it is in discussions with U.S. car maker General Motors Co. over a partnership.

Europe’s number two car maker after Germany’s Volkswagen AG said that “in the framework of its strategy of globalization and performance improvement, PSA Peugeot Citroen is examining cooperation and alliances.”

The statement late Tuesday says “talks are underway” and that there is no certainty that they will result in a deal.

Shares in the company were up 9 per cent in early Wednesday trading at euro15.69.

La Tribune newspaper reported that Peugeot and GM were in talks about an alliance, citing an unnamed “unofficial source.”

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