By RTT News,
December 12, 2013, 01:38:00 PM EDT
(RTTNews.com) - General Motors Co. ( GM ) said Thursday it is selling its entire 7 percent stake in French car maker Peugeot S.A. GM acquired the stake in PSA when the two companies entered into a strategic alliance in March 2012.
GM and Peugeot say they will continue with plans to partner on a new generation light trucks and SUVs to be marketed in Europe. GM explained the decision to sell its stake in Peugeot in a statement released this afternoon:
"Our equity stake was planned to support PSA in their efforts to raise capital at the time of the creation of the GM and PSA alliance, and that support is no longer needed," said GM Vice Chairman Steve Girsky.
"The alliance remains strong with our focus on joint vehicle programs, cross manufacturing, purchasing, and logistics. We're making good progress while remaining open to new opportunities."
The news comes two days after GM named Mary Barra as new chief executive officer of the company. Barra will succeed Dan Akerson, who will step down as chairman and CEO on January 15, 2014.
Also this week, GM said it would stop making its Holden cars in Australia by 2017, citing high production costs and the strong Australian dollar.
The move will leave 2,900 people without jobs. Rival U.S. automaker Ford said earlier this year it will stop making cars in Australia by 2016.
In addition, GM sold the last of its holdings in Ally Financial, formerly its financing arm.
With the sale of its 8.5 percent common equity ownership in Ally Financial, GM expects to record a gain of approximately $0.5 billion, which will be treated as a special item in the fourth quarter of 2013.
For comments and feedback: contact firstname.lastname@example.org