France: GM Officials Meeting With Iran

 

Iran so far away...

Iran so far away…

GM’s alliance with PSA Peugeot-Citroen is one of the bigger mysteries of recent automotive history, fusing two badly underperforming operations tied to a market that’s desperate for consolidation. And, sure enough, as time has passed the scope of the alliance has been reduced, GM’s investment has been written down, and even core platform-sharing aspects of the alliance are being left behind. Without a strong justification in the first place, the GM-PSA alliance has now drifted into pure incomprehensibility, leaving analysts scratching their heads and wondering what comes next.

In the absence of even a basic narrative with which to make sense of the GM-PSA dealings, analysis of the situation from France has turned towards anger at GM. Though it has gone totally uncovered in the US media (at least as far as I can tell), French journalists are now alleging that GM’s PSA maneuvers were all about Iran. The allegation, if true, is stunning: that GM’s alliance with PSA was an attempt to wedge the French automaker out of a market it has long dominated, and that with relations thawing between the US and Iran, GM officials have been meeting counterpoints at Iran Khodro to prepare for GM’s re-entry into that market.

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