PARIS - PSA Peugeot Citroen, Europe's No. 2 car maker, is in advanced alliance talks with US peer General Motors, French online newspaper LaTribune.fr reported on Tuesday, citing an unnamed source.
The discussions, which began several months ago and have yet to reach any agreement, go beyond specific production partnerships of the kind PSA already has with automakers including Ford, Toyota and BMW, the newspaper reported.
GM spokesman Jim Cain and PSA spokeswoman Caroline Mille both declined to comment on the report.
Any deal would have to be approved by the Peugeot family, which holds 30.9 per cent of the French automaker's share capital and 48.3 per cent of voting rights, the report said. If an agreement is reached, it could be announced at the Geneva motor show in early March, it added.
PSA and GM's European Opel division both face heavy restructuring to reverse losses that have been compounded by the region's slumping auto market, industrial overcapacity and cut-throat competition on prices.
PSA on Feb 15 announced a fresh round of cost cuts and put its profitable Gefco logistics business up for sale as it struggles to finance the overseas expansion it badly needs to reduce dependence on its stagnating home markets.
Chief Executive Philippe Varin said the same day that the French automaker may open its planned India factory to a new partner, after freezing the project in January to save cash.
PSA is also looking for a new partner to replace Fiat when the Italian car maker withdraws from their northern French commercial van joint venture in 2017, Varin said on Jan 27.
Among its existing production deals, PSA currently manufactures diesel engines with Ford, gasoline engines with BMW and small cars with Toyota, as well as sharing some vehicles with Mitsubishi Motors. Talks on a deeper alliance with Mitsubishi foundered in 2010.