General Motors Europe Looking for Long-Term Relationship with Peugeot

not the hundreds that existed worldwide in the 1950s when he uttered his sentiments. As it turns out, he’s been more right than wrong so far.

Further extending his wise observation, General Motors and Peugeot are reportedly in talks to create a wide-scale manufacturing alliance to curb their losses. As reported last week, GM’s European Opel division bled through $747 million in losses last year; not as much as the year before, but still a big chunk of change. However, where it’s adjusting with keeping its revenue up and cutting costs, it may not be able to become profitable without more help.

Enter Peugeot, a French automaker that last sold a car in the U.S. in 1994. Peugeot has been desperately seeking partners like a girl rejected at the last minute by her prom date since the late 1990s. It’s since formed a few alliances with BMW for Mini 1.6-liter engines, Ford for diesels in Europe, small cars in Europe with Toyota, and electric vehicles with Mitsubishi.

But now the ailing French giant wants a little more of a long-termer for a committed relationship.

Peugeot and its subsidiary Citroen comprise the second-largest automaker in Europe behind Volkswagen. Together, they produced 3.5 million cars for the world last year, a 1.5-percent drop-off. That’s still significantly less than Volkswagen’s 5 million units alone

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