(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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