GM may write down Peugeot investment
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GM may write down Peugeot investment

GM may write down Peugeot investment

General Motors, which acquired a 7% stake in PSA Peugeot Citroen last March, has said it may have to write down its investment as the European auto market heads toward its fifth straight annual sales decline, Bloomberg has reported. The amount at which GM is carrying the investment in Paris-based Peugeot exceeded its fair value at June 30, GM said in a filing with the US Securities and Exchange Commission. "They're acknowledging that it was a bad decision," Dennis Virag, president of Automotive Consulting Group, said. "The writing is on the wall and they see that in hindsight, it was not a good investment."

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