Following the report on the future partnership, PSA Peugeot Citroen said it is in talks on potential new overseas partnerships, as Dongfeng Motor Co may buy a 30% stake.
According to the China Business News report, Dongfeng is considering a 10 billion yuan ($1.63 billion) investment to buy 30% of Peugeot, which already is its partner in an existing joint venture for the Chinese local market.
“Peugeot confirms it is studying new industrial and commercial projects with different partners as well as the financing to accompany them,” a spokesman said.
Discussions underway also cover new funding for the troubled French car maker’s development, he added.
Under their Chinese DPCA venture, Peugeot and Dongfeng jointly manufacture vehicles including the Citroen C5 mid-sized car and Peugeot 3008 minivan. The Peugeot family had previously indicated readiness to give up control as the company carried out initial soundings on a Dongfeng tie-up while attempting to revive talks on a deeper alliance with a reluctant General Motors.
Peugeot is cutting jobs and capacity after losing 5 billion euros ($6.8 billion) last year. Chief Executive Philippe Varin said in July the company was on track to beat its 2013 goal of halving industrial cash burn to 1.5 billion.
) - Thursday, October 10th, 2013 - filed under Industry
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