Following the news report on a future partnership, PSA Peugeot Citroen said it is in talks on potential new overseas partnerships, with Dongfeng Motor Co potentially acquiring a 30% stake.
According to the news report coming from China Business News, Dongfeng is weighing down a 10 billion yuan ($1.63 billion) investment to buy 30% of Peugeot, with the Chinese automaker already being the French manufacturer’s partner in an existing joint venture for the 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 between the two companies also cover new funding for the troubled French car maker’s development, he added. Under their Chinese DPCA venture, Peugeot and Dongfeng jointly build vehicles, for the Chinese local market, including the Citroen C5 mid-sized car and Peugeot 3008 minivan. The Peugeot family has already signaled previously that it would be willing to cede control over PSA Peugeot Citroen, as the company is on full swing trying to lead initial negotiations on a deeper Dongfeng tie-up, while also using as a back-up plan the attempt to restart talks on a deeper alliance with their rather reluctant US partner, General Motors.