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Meanwhile, it's downsizing manufacturing in Europe. Peugeot announced earlier this year that it would close a major factory in France and cut 8,000 jobs
-- part of a plan to save (EURO)2.5 billion by 2015. An alliance with General Motors to share some procurement costs will also help save money. About (EURO)1 billion are promised for this year alone. The plant closure makes Peugeot Citroen one of the first European car makers to address the continent's critical problem of over-supply. Some analysts say up to 40 percent of Europe's car plants are losing money and operating below capacity. Alliance with GM Under the deal with GM, the American company became the French automaker's second-largest shareholder with a 7 percent stake, behind the Peugeot family, whose stake dropped from 31 percent to around 25 percent. Peugeot says the deal will allow it to cope with tighter emissions targets in Europe and strengthen its position in emerging markets in a way not economically feasible on its own. One of the first concrete benefits of the alliance is a planned purchasing joint venture. Varin said it's ready to go now, and is just waiting for anti-trust approval from European authorities in Brussels and elsewhere. "The approval process is under way, by November it should be ready," Varin said.
[Associated
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