peugeot-citroen-logo1.gifFrench carmaker, Peugeot Citroen is in talks with United States General Motors on forming a strategic partnership.

 

The news sent Peugeot shares soaring almost 13% in early afternoon trade on the Paris Stock Exchange.

 

Reports say the deal would allow the French group to cut its production costs.

 

It could not be drawn on whether the plan was for a full merger or a simple alliance.