Report – Industry Minister says PSA to remain French image

French Industry Minister Arnaud Montebourg said the ailing company would remain French, after souring reports over the firm to be in talks with China’s Dongfeng and the French government over a capital increase.

In an interview with French daily Le Parisien, Montebourg stressed that “PSA will remain a French company.” Further inquiries about the Chinese investment in Peugeot’s capital prompted Montebourg to add: “I didn’t say that. What I’m saying is that the company will stay in France and will remain French.”

Peugeot has officially revealed so far only that it’s mulling new industrial and commercial projects with different partners but has not given any detail and has not even confirmed ongoing negotiations are held with Dongfeng over the 3-billion euro capital increase plan.

The Peugeot family has also indicated it was ready to cede control as the company carried out initial prospective talks for a Dongfeng tie-up, while in the meantime also attempting to refresh a deal to form a deeper alliance with GM. The US automaker toned down initial cooperation with Peugeot months into their alliance and later turned down a government-backed merger, according to sources close to the matter.

Via Reuters