That is the hope behind an alliance between PSA Peugeot Citroen and General Motors entered into early this year.

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In July, PSA Peugeot Citroen announced the loss of 8, 000 jobs and a plan to close a factory in Aulnay, outside Paris.

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French carmaker PSA Peugeot Citroen is also struggling amid Europe's economic downturn.

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Major companies like Peugeot PSA, in autos, Sanofi in pharma, Carrefour, in retail, have announced layoffs leaving unemployment at levels not seen since 1993.

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Once GM acquires the shares, it will be the second-biggest holder of PSA, behind the Peugeot Family Group.

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French automaker PSA, the parent of Peugeot and Citroen, and now a partner with GM, is facing its own crisis.

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Both companies can use some good news in Europe, where GM is wrestling with deep losses at Opel, and PSA is looking for ways to revive Peugeot.

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