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Peugeot Family Hand Over Control To GM
Even after more than a century though, the Peugeot family still maintains control over the auto business. 24.4 percent stake in the company is still held by family members and a highly effective 38.1 percent voting rights is still in the hands of the family. However, the family has not been able to do much to revive the fortunes of PSA Peugeot-Citroën and it is seen as a company struggling for survival.
Reuters now reports that the Peugeot family has finally conceded and is ready to provide GM with greater control over the workings of the company. GM currently owns 7 percent in Peugeot, through its German Opel brand. Proceedings are already underway according to Reuters sources, though both companies have refused to comment on the issue.
With deeper GM involvement, we could see a deeper PSA and Opel integration. Such a development will also see GM inject money into the cash strapped Peugeot brand. It is also possible that a completely scenario could play out where a Chinese auto giant (read BAIC) could end up getting a major share in the French company.
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