GM may write down Peugeot stake if Europe worsens: filing
DETROIT (Reuters) - General Motors Co (GM.N) said it may have to write down the value of its 7 percent stake in French automaker Peugeot SA (PEUP.PA) owing to the deepening fiscal crisis in Europe that has hurt vehicle sales in the region and stock prices.
GM said the economic uncertainty was "weighing heavily" on the value of its stake in Peugeot, according to a quarterly regulatory filing.
The largest U.S. automaker also described the decline as "temporary." GM announced an alliance with Peugeot a little more than five months ago.
"Should market conditions not recover in the near-term, we may conclude the impairment is other-than-temporary, resulting in an impairment charge," GM said.
GM paid 320 million euros, or $423 million, for its stake, according to a March regulatory filing. Based on Peugeot's current market value, a 7 percent share of the company is worth 146 million euros ($180.16 million).
"We currently have the ability and intent to hold the investment until its fair value recovers," GM said.
The disclosure comes a day after GM reported better-than-expected results in Europe. GM executives acknowledged that region -- where the company sells the Opel and Vauxhall brands -- remained challenging.
GM shares were up 4.5 percent at $20.00 on Friday afternoon on the New York Stock Exchange.
WASHINGTON - U.S. job growth accelerated sharply in February despite the icy weather that gripped much of the nation, easing fears of an abrupt economic slowdown and keeping the Federal Reserve on track to continue reducing its monetary stimulus.
- U.S. small businesses borrowed more money in January than they did a year earlier, signaling continued growth in the economy despite a spate of cold weather that has been blamed for weakness in many other indicators of activity.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.