Hours after announcing it would scale back – but continue – its alliance with PSA Peugeot Citroen, General Motors revealed it was selling off its 7% stake in the troubled French automaker.
Without those economic ties, industry observers say there appears to be even less of a reason for the two manufacturers to continue any long-term affiliation beyond the two product sharing deals and a few smaller arrangements they currently plan to move ahead with.
GM initially purchased its stake in Peugeot last year at a time when the two makers expected they could achieve $2 billion in savings by working together. Both companies have been losing billions in Europe in recent years. But since initially inking their alliance both have shifted strategies, raising ongoing questions about whether they could meet their original goals.