(Adds reaction from Peugeot-Citroen, GM and Tata.)
PSA Peugeot-Citroen SA (UG.FR) is considering an alliance with
India's Tata Motors Ltd. (500570.BY), German monthly Manager
Magazin reports Wednesday citing corporate sources.
PSA Chief Executive Officer Philippe Varin is looking for an
alternative in case the French car maker's alliance with U.S. auto
maker General Motors Co. (GM) fails, according to the report.
Tata would benefit from PSA's engine technology and expertise in
building compact cars. PSA is hoping to jointly launch a low-cost
brand similar to Renault SA's (RNO.FR) Romanian Dacia unit, the
magazine reported. Tata could also inject capital into the troubled
French car maker, the report said.
Spokesmen for Peugeot-Citroen and GM's European unit declined to
comment on the report. A spokesman from Tata denied it had an
alliance plan with Peugeot-Citroen.
Magazine website: www.manager-magazin.de
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