GM Sells Stake in PSA

General Motors Co. is selling its entire 7% stake in PSA Peugeot Citroen through a private placement to institutional investors.

GM paid €297 million ($397 million) in March 2012 to buy 24.8 million shares in PSA. The investment was part of a strategic alliance launched to pool purchasing and logistic activities in Europe and co-develop small and midsize MPVs and crossover vehicles.

GM says it invested in PSA to help the French company raise capital but now believes "that support is no longer needed." The alliance itself will continue, introducing its first jointly developed vehicles in 2016.

The companies announced separately on Wednesday 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 they will collaborate to develop "new-generation" products for Europe's B-segment light commercial vehicle market.