PSA PEUGEOT Citroen yesterday confirmed it is in talks over potential new overseas partnerships, after reports that Chinese group Dongfeng Motor may buy a 30 per cent stake in the troubled French car manufacturer.
The discussions also cover new funding for the firm’s development, a spokesman said.
“Peugeot confirms it is studying new industrial and commercial projects with different partners as well as the financing to accompany them,” he said.
According to the China Business News report, Dongfeng is considering a 10bn yuan (£1.02bn) investment to buy 30 per cent of Peugeot, its partner in an existing joint venture. Peugeot declined to comment on the report.
Peugeot is cutting jobs and capacity after losing €5bn (£4.2bn) last year. The firm has been battered by a slump in car purchases across Europe, where it makes two-thirds of its sales.
City A.M. Reporter