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Tata denies report on alliance talks with PSA



Admin15.11.2012г 

Tata denies report on alliance talks with PSA

BERLIN (Reuters) -- Indian automaker Tata Motors Ltd. denied a report on Wednesday that it is in talks to set up an alliance with money-losing PSA/Peugeot-Citroen.

"That is absolutely incorrect," Tata spokesman Debasis Ray told Reuters.

Citing unnamed company sources, Germany's Manager Magazin reported Wednesday that PSA CEO Philippe Varin is looking for an alternative should his company's planned alliance with General Motors and GM's European unit, Opel/Vauxhall, collapse.

"We are still not commenting on the countless rumors about the group," a PSA spokesman said.

GM and Peugeot have halted talks on a deeper tie-up amid misgivings about the French carmaker's worsening finances and government-backed bailout, Reuters reported on Tuesday, citing people familiar with the matter.

PSA, which is burning though 160 million euros ($200 million) of cash a month, is scrapping 10,000 jobs and closing its Aulnay plant near Paris. GM, which predicts European losses of $1.5 billion to $1.8 billion this year, is in union talks to close an Opel factory in Bochum, Germany.

Read more: autonews.com




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