After Fiat Chrysler Automobiles was not long ago the target of two consecutive tie-up rumors, the news has swung this week towards France’s PSA Peugeot Citroen.
The European carmaker, the second largest in the region, has reportedly entered partnership talks with India’s Mahindra – according to the Times of India newspaper. The automaker would mull a partnership deal with India’s Mahindra & Mahindra to share costs, technology and production sites. PSA Peugeot Citroen has just completed a share deal that saw the Chinese partner Dongfeng and the French state take equal stakes in the ailing carmaker.
“The Indian market is obviously important to us for the future, but at this stage we are not in discussion with anybody on a rapid return to India. Our current priority is the recovery of the group,” said a PSA spokeswoman.
The carmaker denied the report that came from unnamed sources. The newspaper said the two manufacturers would enter a strategic alliance, with the prospect of sharing technology, manufacturing capacity both in France and India as well as “significant investments.” The French company has pulled out of the Indian market back in 1997 and has failed to stage a comeback so far.
Via Automotive News Europe