SHANGHAI, June 19 General Motors Co
reiterated on Wednesday that it has no immediate plans to invest
further in its struggling European partner PSA Peugeot Citroen
, which is cutting 8,000 jobs and closing a domestic
plant to stay afloat.
"We don't have any intention of investing additional funds
into PSA at this time," Chief Executive Officer Dan Akerson told
a media briefing in Shanghai. "If we see something changes,
we'll evaluate that."
Peugeot may have to raise funds through a share sale as the
loss-making French carmaker burns through cash in a weak market,
two sources familiar with the situation told Reuters last month.
GM, which owns a 7 percent stake in Peugeot and struck a
broad-based alliance with the French automaker, in February
wrote down about half of its $423 million investment in the
"One of the premises of the alliance was, we've got to fix
our problem, and we've addressed it, and continue to make
progress," Akerson said. "They have to address their issues and
I think they're doing that as well."
GM finance chief Dan Ammann said in February the U.S.
automaker had no plans to put more cash into Peugeot.
Carmakers have been hit hard by a plunge in demand in
recession-hit Europe. GM has said it intends to break even in
Europe by mid-decade.