Dongfeng still undecided on possible PSA stake acquisition

Article by Anita Panait, on September 27, 2013

Chinese auto group Dongfeng Motor is "far" from coming up with a decision over a possible investment French carmaker PSA/Peugeot-Citroen after it was approached by investment banks. Song Hefeng, an official at Dongfeng’s legal and securities affairs department, confirmed that investment banks indeed got in touch with the carmaker regarding PSA and it is doing preliminary research on it.

PSA is mulling selling a stake to joint-venture partner Dongfeng to raise cash for its planned expansion outside Europe, although discussions remain at a preliminary stage, people privy with the matter told Bloomberg earlier this month. A sale could result to the Peugeot family – who currently holds 25.5 percent of the shares --  losing control of the carmaker.

PSA is bound to have four plants in China by the end 2013. The first three sites are operated through a joint venture with Dongfeng and are located in Wuhan.

PSA in July inaugurated its most recent plant, which is expected to boosts the carmaker’s annual production capacity in China by two-thirds to 750,000 vehicles by the end of 2015.

PSA is opening this month the fourth plant in Shenzhen, operated under a joint venture with Changan Automobile Group. The Shenzhen site will build PSA’s upscale DS models and will commence production with the DS5.

Topics: psa

If you liked the article, share on:

Pin It

Comments

Recommended

To the proud owners and owner-to-be of the Porsche 991 Carrera GTS, there's good news for you all. German automobile manufacturer Porsche recently confirmed to the public that the Porsche...
by - March 23, 2017
McLaren diehards, this is the moment that you're all waiting for. The British automaker recently publicized the teaser outline of its new automobile that will hit the streets soon, dubbed...
by - March 23, 2017
PSA seems very confident about conquering the world. The purchase of Opel/Vauxhall for €2.2 billion ($2.3B) from General Motors makes PSA the second largest car company, just behind the Volkswagen...
by - March 23, 2017
Reporting for duty. It’s been a year since the Victoria Police was loaned a new Mercedes-AMG GLE 63 S Coupe. In those 12 months, the coupe served as the law...
by - March 23, 2017
After making its debut at the Paris Motor Show last year as a concept car, the Trezor by Renault managed to bring home the 2016 Concept Car Design Of The...
by - March 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries