/ Citroen, Industry, News, Peugeot / French state investment in PSA actually bends rules

French state investment in PSA actually bends rules

Linked In Share
French state investment in PSA actually bends rules

We thought we already knew all there is to know about PSA’s 3 billion euros capital injection made by China’s Donfeng and the French state. Well, t actually turns out the latter had some rule bending to do.

Last week’s official confirmation of the long debated, heated and reported deal that would see Dongfeng Motors and the French state take matching stakes in the ailing automaker, diluting the Peugeot family’s stake to the same 14% has raised many questions and concerns from industry observers and analysts.

In this story, we’ll just focus on one – the French state cleverly circumvented EU policies that prevent and regulate state aid to companies. The European regulators cannot call on the government because it’s investing the same €800 million amount as a private company. Still, Dongfeng’s owner actually has the Chinese state as its patron.

And, as a matter of fact, which we can clearly see from the other deal PSA struck – a financing one with Madrid’s Banco Santander that aims to replace state guarantees – the French government already bailed the carmaker once – in a huge 7 billion euro financing guarantee.

PSA is on a long way ahead to return to profitability, as the French state’s aid also comes with compromises – like no French factory closures, that would protect jobs, but ultimately hamper the already long overdue restructuring plan – the company already lost more than the 7 billion euros bailout guarantee in the last two years alone.

Via Financial Times

by Aurel Niculescu (my Google+) - Thursday, February 27th, 2014 - filed under Citroen, Industry, News, Peugeot. Image credit: .
Linked In Share
Related Articles
deal EU rules french state psa


Discuss: French state investment in PSA actually bends rules

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

2015 Hyundai Santa Fe arrives in Australia
2015 Hyundai Santa Fe arrives in AustraliaHyundai has announced the launch of the 2015 Santa Fe in Australia, where the cheapest version of the model is available for ...
Dacia Sandero RS rendered
Dacia Sandero RS renderedThe first rendering with the upcoming Dacia Sandero RS has recently hit the web and it is providing us with a first glimpse on ...
Tesla safe from CO2 costs hitting automakers
Tesla safe from CO2 costs hitting automakersTesla Motors, the California based startup that has already come to disrupt the natural order among automakers could have another ...
Citroen DS3 and DS3 Cabrio Ines de la Fressange Paris Concepts unveiled
Citroen DS3 and DS3 Cabrio Ines de la Fressange Paris Concepts unveiledCitroen has officially unveiled the new DS3 and DS3 Cabrio Ines de la Fressange Paris Concepts, which will be introduced next ...
Report – Hyundai plans two new China factories instead of one
Report – Hyundai plans two new China factories instead of oneAccording to sources that have knowledge of the plans, South Korea’s Hyundai Motor is mulling the expansion of its ...
Bentley Mulsanne Speed goes official
Bentley Mulsanne Speed goes officialBentley has officially introduced a new and sportier version of the Mulsanne, called the Mulsanne Speed, which will be making its ...
[VIDEO] Mercedes-Benz C63 AMG Sedan spied on the Ring
[VIDEO] Mercedes-Benz C63 AMG Sedan spied on the RingThe new generation of the Mercedes-Benz C63 AMG Sedan has been recently spotted on the Nurburgring where it was being tested ...
Report – PSA in talks with Mahindra for scooter unit sale
Report – PSA in talks with Mahindra for scooter unit saleSources that have knowledge of the plans have reported to Bloomberg that Indian maker Mahindra & Mahindra is in advanced ...
U.S. – 2015 Kia Sedona pricing announced
U.S. – 2015 Kia Sedona pricing announcedThe 2015 Kia Sedona is now available for order across the United States from 25,900 USD, as the company has recently ...
[VIDEO] Renault Eolab Concept officially unveiled
[VIDEO] Renault Eolab Concept officially unveiledThe 2014 Paris Motor Show will see the debut of a brand new Renault concept car, called the Renault Eolab. The Renault Eolab ...
US: federal regulators under scrutiny for GM recall role
US: federal regulators under scrutiny for GM recall roleThe auto safety regulators have been confronted by US legislators in the latest Senate hearing involving the recall of 2.6 ...
2015 Honda Civic unveiled
2015 Honda Civic unveiledHonda has officially unveiled the 2015 Civic model, which will go on sale tomorrow, in the United States. After officially ...
BMW 2-Series Active Tourer gets updated
BMW 2-Series Active Tourer gets updatedBMW has announced a series of updated for the 2-Series Active Tourer which includes three new engines and the xDrive all-wheel ...
Italy – Audi TT Nuvolari special edition introduced
Italy – Audi TT Nuvolari special edition introducedThe Audi TT Nuvolari is a new special edition of the model which has been recently introduced to Italy. The brand new Audi TT ...
Hertz reveals the three outgoing directors in Icahn pact
Hertz reveals the three outgoing directors in Icahn pactThe well-known car rental company has been troubled recently by the departure of its CEO following internal audit issues and ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Citroen DS3 and DS3 Cabrio Ines de la Fressange Paris Concepts 1
Bentley Mulsanne Speed 1
Renault Eolab Concept 1
2015 honda civic 1
Audi TT Nuvolari 1
Honda Jazz prototype 1
2015 Ford C-MAX 1
lamborghini gallardo chrome crash female student michigan state university 1
Toyota Urban Utility Concept 1
audi r8 crash uk 1
range rover evoque svr 1
jeep-wrangler-rubicon-x-1

More automotive from inautonews
Hyundai has announced the launch of the 2015 Santa Fe in Australia, where the cheapest version of the model is available for order from 38,490 AUD. According to the car manufacturer, the 2015 Hyundai Santa Fe, in the Active petrol manual version, will become available from 38,490 AUD, being ...
read more
Inautonews Editors Section
Top 10 Ferrari F1 drivers No.1 Michael Schumacher
Top 10 Ferrari F1 drivers No.1 Michael SchumacherThe greatest driver of the modern age and perhaps the most complete off all-time he rewrote all the conceivable records in such a dominant fashion ...
Can Ricciardo do a Prost ’86?
Can Ricciardo do a Prost ’86?For the third time this season, Mercedes faltered in their 1988-esque campaign and there’s only one man ready to pounce whenever opportunities ...
Test Drive – Mercedes-Benz E250 CDI 4Matic
Test Drive – Mercedes-Benz E250 CDI 4MaticDaimler’s passenger cars division – which consists of the Mercedes-Benz and Smart brands – has vowed to recover the distance from its German ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety US: House committee report criticizes the NHTSA on GM ignition switch mishapJust a few hours ahead of a new Senate panel hearing that would see NHTSA acting administrator ... Recall roundup: Porsche 918 SpyderPorsche has just issued a recall for its most impressive model ever created, the 918 Spyder, ...
Safety Section