General Motors and PSA are no longer in talks for a possible tie-up between Peugeot and Opel for an operational partnership. Several people with direct knowledge of those discussions have said the negotiations stopped because of the French carmaker's worsening finances and government-backed bailout.
For now it seems that there won't be an agreement before 2014 and that isn't even sure because of the bailout conditions that rule out French job cuts, meaning all the cuts would have to be done in the German side (Opel).
Both companies are in big trouble with Peugeot losing 160 million euros (200 million dolars) a month and having to cut around 10.000 jobs, and Opel isn't better with predictions of losing over 1.2 billion euros (1.5 billion dollars) this year in Europe and wants to close an Opel factory in Bochum, Germany.
Source: Reuters
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