General Motors will purchase a 7% stake in French automaker Peugeot Citroen according to the Detroit Free Press. The alliance is designed to save money and help GM to become more competitive in a shrinking European car market.

GM Chairman and CEO Dan Akerson is quoted as saying "this partnership brings tremendous opportunities for our two companies. The alliance synergies in addition to our independent plans, position GM for long-term sustainable profitability in Europe."

GM is trying to end 12 years of losses in Europe. During that time period, the company has lost more then $12 billion.