Dongfeng Motor may buy a 30 percent stake in PSA/Peugeot-Citroen for $1.63 billion

Article by Christian Andrei, on October 10, 2013

Chinese company Dongfeng Motor will pay about $1.63 billion to secure a 30% stake in PSA Peugeot-Citroën, according to reports in the Chinese media. Already, Dongfeng functions as PSA's Chinese partner and both of them operate three assembly plants in China. The company has denied that there was any deal and told Chinese media that it was doing only 'preliminary research' on investing in PSA.

If Dongfeng makes this move, it will pose a problem for PSA's partnership with General Motor's Opel-Vauxhall brands. GM owns a 7% stake in PSA and the two have unveiled plans to merge production of their respective compact MPV and SUV models onto a PSA platform.

PSA's financial problems are well known, with the company posting losses of $6.8 billion in the 2012 financial year alongside automotive revenue dropping by more than 10%. Last June, there were reports that the Peugeot family, which owns a 25.4% stake in the business, may step back to permit GM to take over the company.

Many widely believed that the Peugeot family announcement was meant to prove the seriousness of its financial position. GM and PSA recently made an announcement that majority of their future compact MPV and compact SUV models will be produced in the same plant, built with PSA platforms and engines but using Opel’s engineering and manufacturing plants.

There are domestic problems facing any agreement between Dongfeng and PSA. Talks are ongoing between the PSA and the unions in order to cut overtime pay and freeze salaries in exchange for more French production and investment. Any agreement will need those negotiations to be completed.

Topics: psa, peugeot, citroen

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016