In a filing to the Security and Exchange Commission, GM said it may have overpaid in its February 29 transaction to purchase a minority stake in PSA. GM says it will "hold the investment until its fair value recovers", but also warned that it may have to take a loss on the purchase "should market conditions not recover in the near-term."
GM purchased the 7 percent stake in PSA with the hopes that the partnership would shave costs in the areas of purchasing and research and development. GM was also seeking access to the French automaker's "inbound and outbound logistics."
GM posted a $361 million loss in the European market last quarter. So far this year PSA has lost $990 million.
