7/12/12, "Peugeot cuts 8,000 jobs to end losses, shuts plant," Reuters
"The (Peugeot) stock has plunged 32 percent since Jan. 1, wiping 1.2 billion euros off the struggling automaker's market value. General Motors bought a 7 percent Peugeot stake in March as part of a far-reaching alliance plan announced the previous month....
Analysts said other manufacturers considering or engaged in restructuring include Renault, Fiat, and Opel, the ailing European arm of General Motors Co, as the European auto industry fights
- chronic overcapacity in a market that has shrunk by 20 percent since 2007....
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"General Motors Co. still owed about $25 billion" to US taxpayers as of 1/26/12.
2/28/12, "Reports: Peugeot to raise $1.34B as part of GM buying 7 percent stake in French automaker," MLive, MichiganLive, M. Wayland
"General Motors Co. is reportedly close to purchasing a 7 percent stake in PSA Peugeot Citroen in an effort to help its struggling European operations.
According to numerous media outlets, the Paris-based carmaker could announce as soon as this week plans to sell a stake of its operations to the Detroit-based company as part of a development alliance."...
A “person familiar with the situation” told the Wall Street Journal Tuesday that the alliance plans to raise about €1 billion ($1.34 billion) in connection with the reported alliance, which would be worth up to €250 million based on Peugeot's market capitalization of €3.58 billion....
Executives at GM have consistently said that drastic changes are coming this year to GM Europe, which lost $747 million last year."...
------------------------------------------------Feb. 2012 commenters re: GM bailout out Peugeot:
Comments at MLive:
This investment in Peugeot is called a development alliance by GM. Three years ago the US taxpayers bailed out GM now they are going to try to bail out a little part of Europe by investing in Peugeot GM is losing money in Europe because their giant subsidiary, Opel,( Buick Regal ) is caught up in Europe’s financial mess , I don’t’ see how the Peugeot deal is going to help that situation."
Looks like GM is back to their old ways. What a surprise."
Sparkenator:
Numerous analysts feel the same way. They say both companies are in too much of a mess in Europe to help one another. Since 1999, GM Europe has lost $12.4 billion.
http://content.usatoday.com/communities/driveon/post/2012/02/analysts-gm-peugeot-linkup-wont-fix-gm-europes-losses/1#.T04hg4fOV2A
Thanks for reading and commenting."
-------------------------------------------------1/26/12, "Report: Taxpayers still owed $133B from bailout," AP, via Fox News
"Companies that were bailed out during the financial crisis still owe U.S. taxpayers nearly $133 billion. Treasury's plans to recoup that money have been slowed by the volatile stock market and weakness among smaller banks.
Some of the money will never be recovered.
That's the conclusion of the acting inspector general for the government's financial bailout. Some bailout programs, like the effort to reduce home foreclosures, will last as late as 2017, the inspector general said. Those programs could cost an additional $50 billion or more.
Among the largest bailed-out companies, American International Group Inc. still owes taxpayers around $50 billion, General Motors Co. owes about $25 billion and Ally Financial Inc. about $12 billion....
"TARP is not over," Christy Romero, the acting IG, said in a statement."...
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Ed. note: Instead of paying us back they put $1.34 billion into Peugeot.
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