June 19, 2013 / 5:01 AM / 4 years ago

GM says no plans to invest more in struggling PSA

SHANGHAI, June 19 (Reuters) - 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 company.

“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.

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