PARIS—U.S. auto giant General Motors (IW 500/4) said today it has no intention of investing further in Europe's second biggest car company, PSA Peugeot Citroen (IW 1000/47), after reports surfaced that the Peugeot family had sought GM’s help.
According to Dow Jones Newswires, Peugeot had approached GM in recent months seeking a cash injection and an expansion of its current 7% stake.
"Our position remains unchanged: We have no intention of investing additional funds into PSA at this time," a GM spokesman said. "We will not comment on speculation."
Deeply affected by the eurozone debt crisis, Peugeot is struggling after the collapse of the European car market and the failure to expand into emerging markets.
Dow Jones also reported that the French company, still effectively controlled by the Peugeot family, also approached Chinese partner Dongfeng about taking a stake in the company.
Any of these stakes would answer the family's stated desire to scale back its voting share in the heavily indebted car group, currently at 37.9%.
PSA and the Peugeot family refused comment on the matter.
Copyright Agence France-Presse 2013