GM and PSA Peugeot-Citroën May Merge in South America

PeugeotPeugeotFrance, 1882 > present120 models
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7 videos
boss Maxime Picat told the Financial Times that PSA Peugeot-CitroënCitroënFrance, 1919 > present94 models
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and GMGMUnited States of America, 1998 > present8 models
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are working on a partnership that would have the two auto companies merge together in South America. 

Given the shrinking European market, PSA is doing whatever it can to diversify to other markets around the world. Both GM and PSA already sell cars in South America, though GM has a much larger market share there. 

"We have decided to focus on China, South America and Russia. These are clearly our key targets outside Europe," said Picat.

GM purchased a 7% share of PSA in 2012, and the two of them nearly merged European operations before PSA took a significant loan from the French government that put government employees on the board of directors. The two of them are still planning to share development and parts in the coming years. 

Source: Automotive News Europe