General Motors Sells All Shares of PSA Peugeot-Citroën

General MotorsGMUnited States of America, 1998 > present8 models
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is making some of the biggest business changes in its history this week. It announced Mary Barra as its next CEO, will shut down most of the ChevroletChevroletUnited States of America, 1911 > present82 models
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brand in Western Europe and will end HoldenHoldenAustralia, 1856 > present29 models
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production in Australia. While it announced yesterday that it would continue developing vehicles with PSA PeugeotPeugeotFrance, 1882 > present120 models
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-CitroënCitroënFrance, 1919 > present94 models
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, it has just announced that it is selling its stake in the company for around €250 million.

General Motors bought a 7% stake of PSA on February 29, 2012, and less than two years, it is divesting itself on the investment. GM is selling all 24,839,429 shares that it bought of PSA. GM says that it already has institutional investors to buy the shares. GM never announced the price that it bought the stock for; it is unknown if the sale is creating a profit or loss.

GM announced yesterday that it would continue to develop a new B-segment MPV and C-segment crossover based on PSA platforms. GM will build the MPV, and PSA will build the crossover. It also announced that it is no longer developing a new B-segment platform and new small petrol engine with PSA.

PSA has had financial problems in the past years and is working with Chinese joint venture partner Dongfeng to sell a significant amount of stock.