Send the Envoy! This is so paranoid it just might be true: Was the recent “alliance” between partially US-owned General Motors and France’s Peugeot (PSA) not about sharing costs at all, but about … screwing Iran? It seems that Peugeot supplies crucial parts to Iran’s major automaker, Iran Khodro. There is now intense pressure to cut off that supply–indeed, it’s been cut, at least temporarily. “[A]n extended boycott could result in a breakown of its car production and in unrepaired cars after they had broken down.” … It’s hard to find another good explanation for the deal, which has left analysts scratching their heads, since the major problem GM faces is overcapacity and the deal won’t reduce capacity. … Actually, maybe it will. In Iran. …
P.S.: Note that, if true, this scenario would give GM a national security justification for continued federal subsidies when/if it needs them. …
P.P.S.: Equally strange things have happened. See Explorer, Glomar. ….
Update: Peugeot needs cash to pay off debt. It just sold off it’s Paris headquarters. Maybe the 7% stake in Peugeot that GM bought–part of a billion-euro offering–was simply the price the French company demanded for giving up its Iran business. It’s all starting to make sense now! …
If that’s what’s going on, it sure was handy that the U.S. government had a giant captive automaker to do its bidding. Corporatism has its rewards …