General Motors Co. is in talks about a possible alliance with France’s leading carmaker PSA Peugeot Citroen, a deal that could dwarf PSA’s partnerships with BMW, Mitsubishi Motors and Toyota.

Peugeot Citroen shares surged on news of the talks, which were confirmed Wednesday by France’s labor minister.

The Paris-based maker of the Peugeot 207 hatchback and Citroen C4 Picasso minivan lost $578 million on its car business last year amid falling sales and concerns over management’s strategy among industry analysts. The family-controlled company whose roots stretch back more than 200 years has been hard hit by the economic downturn in Europe, where it sells more than 50 percent of the 3.5 million cars it sells annually.

Peugeot released scant details about the talks. Its statement said only that it was examining “projects for cooperation and alliances” related to its strategy of “globalization and performance improvement.”

On Wednesday, GM said only that it routinely talks with other companies in the industry.

Ford adds $3.8 billion into its pension plans

Ford Motor Co. will pump $3.8 billion into its global pension plans this year as it tries to get them closer to fully funding their obligations.

The company also raised the annual pay for its 16 directors by 25 percent to $250,000, according to its annual report filed Tuesday with the Securities and Exchange Commission.

Ford said it will put $2 billion into the U.S. pension plan, make $350,000 in benefit payments and put the remaining $1.45 billion into other plans across the globe. As of Dec. 31, the U.S. plan was $9.4 billion short of its obligations, while global plans, which include the U.S., were short $15.4 billion, the report said.

The company said it expects the global funds to be fully funded during the next few years based on long-term investments and company contributions.

Hillenbrand names successor for chairman

Manufacturer Hillenbrand Inc. said Wednesday that Ray Hillenbrand plans to retire as its chairman and will be succeeded by F. Joseph Loughrey, retired president and chief operating officer of Cummins Inc. in Columbus, Ind., which makes engines and power generators.

Loughrey is chairman of Hillenbrand’s nominating and corporate governance committee.

Ray Hillenbrand’s retirement will be effective as of the company’s 2013 shareholders meeting. James Henderson, Hillenbrand’s vice chairman, also is retiring then, the Batesville, Ind., company said.

Hillenbrand has two main businesses: Batesville, a maker of caskets and other related products, and its process equipment group, which makes equipment and systems used in industrial processing applications.

GM appoints veteran to lead R&D efforts

General Motors says veteran engineer Jon Lauckner will head the company’s research and development efforts.

Lauckner will become the automaker’s chief technology officer starting April 1.

He’ll also continue to lead GM Ventures, which invests money in technology companies. And he will remain on the product development staff.

Lauckner will replace retiring Chief Technology Officer Tom Stephens and Alan Taub, head of research and development.