French carmaker PSA Group plans to sell its remaining 25 pc stake in Gefco, its former logistics subsidiary.
The carmaker said in a statement that “Gefco’s operational performance and the diversification of its client portfolio no longer [make] it necessary for [PSA Group] to have a minority stake in the capital.”
Once its exclusive owner, PSA sold a 75 pc stake in Gefco to Russian Railways (RZD) in 2012 for 800 million euros to raise cash during a tough period for the carmaker. The currently undisclosed sum PSA is selling the remaining 25 pc of Gefco for could also come in useful, given the capital requirements all vehicle manufacturers face.
Gefco remains PSA’s principal logistics provider. In 2016, the company signed an 8 billion euro, five-year deal with the carmaker, with fourth-party logistics (4PL) services for global operations featuring prominently within the contract. The pact gave Gefco exclusive responsibility for managing the complete supply chain for wholly-owned PSA activities, including for inbound, finished vehicles and spare parts logistics.
Gefco already provided services for Opel/Vauxhall under an agreement signed in early 2013. PSA acquired Volvo from General Motors last year for 2.2 billion euros.
In a statement this week, Gefco said it remained a strategic partner for PSA and was confident in its “ability and willingness to provide continued outstanding quality and value” to the carmaker.
-By Marcus Williams, Automotive Logistics