GM Sells its Shares in PSA

General Motors Co. is selling its entire 7% stake in PSA Peugeot Citroen to institutional buyers, saying the €297 million investment it made in March 2012 is "no longer needed" by the French carmaker.

GM bought 24.8 million shares in PSA as part of a strategic alliance to pool purchasing and logistics operations in Europe and to co-develop and produce small and midsize MPVs and crossover vehicles.

The alliance itself will continue and expects to debut its first vehicles in 2016. But the partners say the net savings from their collaboration by then will be about $1.2 billion (€873 million), down from the $2 billion (€1.5 billion) they originally predicted.

The companies announced separately that their jointly developed C-segment crossover vehicle will be assembled at PSA's factory in Sochaux, France. In October they said GM would build a B-segment MPV in Zaragoza, Spain, for sale by both companies.

The partners also announced that they will collaborate to develop "new-generation" products for Europe's B-segment light commercial vehicle market. The companies did not elaborate.