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GM in Alliance Talks With Peugeot as European Sales Sink

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General Motors Co. and PSA Peugeot Citroen are in talks to form a broad partnership as the two automakers struggle with declining car sales in Europe.

The alliance may include developing engines and building vehicles together in the region, a person familiar with the discussion said today, declining to be identified because the talks aren’t public. Peugeot rose the most in almost three years.