The following video is part of our "Motley Fool Conversations" series, in which industrials editor and analyst Brendan Byrnes and consumer goods editor and analyst Austin Smith discuss topics across the investing world.

In today's edition, Brendan and Austin discuss GM's recent decision to purchase a 7% interest in French automaker Peugeot. This looks to many like a curious decision in light of the problems facing Europe's auto industry. The main issue right now is an overcapacity problem that is driving costs higher. This deal with Peugeot won't solve that problem, but is it still worthwhile for GM?

Austin Smith has no positions in the stocks mentioned above. Brendan Byrnes owns shares of Ford. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.