The Peugeot crisis opens up M&A scenarios. According to the press, the family that controls Peugeot would have given the go-ahead for the merger with General Motors/Opel. While, again according to the press, the Chinese partner of the French group, Dongfeng Motor, would have refused a similar offer. Moreover, as anticipated yesterday by Greg Martin (GM spokesman), the US giant has no intention of investing more money, after having taken over the 7% stake in the French group, until the government provides indications on the management of production overcapacity in France.
Barclays analysts are skeptical about it. Strengthening the alliance with General Motors would bring no advantage and would have no logic either on the part of Peugeot or GM, also because Peugeot's situation has worsened further with the industrial alliance with the American group, about 16 months ago.
