While many agree that ultimately PSA’s deal was necessary, the pro/contra debate continues – as it actually did from the start of the first reports.
Industry observers and analysts also warn that PSA Peugeot-Citroen’s 3 billion euro capital increase that would see China’s Dongfeng Motor and the French state take matching stakes could bring instability.
French financial newspaper Les Echos said: “The dragon that came to the rescue of the lion. The lion isn’t dead, but it has radically changed its appearance.”
Also, talking to the newspaper, GERPISA’s car industry research network director Bernard Jullien said the partnership agreement is turning out to become an unprecedented alliance but also warned the three-headed stake holding scenario could prove and instability generator.
Arnaud Montebourg, minister of industrial renewal, said in an interview on radio station France Inter: PSA is a company with the technology, the marques, but has not been able to grow in Asia, while Dongfeng doesn’t have the technology or the marques, but has the growth in Asia.”
Gilles Carrez, chairman of the National Assembly’s finance committee, also said about the deal that PSA “had no choice”, because the French carmaker “did not know how to operate globally.”
Via Automotive News Europe