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View Full Version : USA auto bailout for France (Peugeot)




Pauls' Revere
03-09-2012, 08:22 AM
http://news.yahoo.com/american-auto-bailout-france-100824412--abc-news.html

Attention U.S. taxpayers: You now own a piece of a French car company that is drowning in red ink.

That's right. In a move little noticed outside of the business pages, General Motors last week bought more than $400 million in shares of PSA Peugeot Citroen - a 7 percent stake in the company.

Because U.S. taxpayers still own roughly one-quarter of GM, they now own a piece of Peugeot.

Peugeot can undoubtedly use the cash. Last year, Peugeot's auto making division lost $123 million. And on March 1 - just a day after the deal with GM was announced - Moody's downgraded Peugeot's credit rating to junk status with a negative outlook, citing "severe deterioration" of its finances.

In other words, General Motors essentially just dumped more than $400 million of taxpayer assets on junk bonds.



Just in case anyone was wondering where thier auto bailout money was going. Thanks Obama!

Vanilluxe
03-10-2012, 08:52 PM
Its sad, peugeot and citroen was one of my favorite car company, the suspension system that saved Charles De Gaulle's life was legendary.