The French automaker, Europe’s second-biggest, reaffirmed it’s currently examining new cooperation agreements to gather much needed cash for investments and expand outside its home region, where demand slew to a 20-year low.
According to previous reports, Dongfeng Motor Corporation is allegedly ready to acquire a 30% stake in Peugeot for around 10 billion yuan ($1.63 billion), while other sources also say Peugeot is planning to gather 3 billion euros ($4.1 billion) by selling new stock, with Dongfeng and the French government both taking matching stakes in the carmaker.
The company is “examining industrial and commercial developments with different partners, including the financial implications that would result from them,” the Paris-based automaker said in a statement today. “None of these projects has reached maturity yet.”
A Dongfeng investment would bring Peugeot the necessary cash to balance its finances and would prove an asset in its ongoing struggle to expand outside Europe, where the auto market is set to decrease for a sixth straight year. Peugeot and Dongfeng are already operating three assembly plants together in China, the world’s largest auto market.
Peugeot’s board could address the probable stake sale during a board meeting set for Oct. 22, the day before the automaker reports third-quarter revenue numbers, according to people close to the matter, who asked not to be identified because they are not allowed to discuss private meetings.