PSA Peugeot Citroen is looking at collaborations with other carmakers, according to reports.
Its shares have jumped 15% after the firm said it was in talks about possible "co-operations and alliances", reports the BBC.
France's labour minister said that Peugeot was in talks about a strategic alliance with General Motors.
GM said it routinely talks to other firms in the industry.
PSA already partners with Toyota for its city cars (C1, 107, Aygo) and with Mitsubishi for its electric vehicles (C-Zero, Ion, I-Miev).