PSA/Peugeot-Citroen signs tie-up with Dongfeng Motor Group

Article by Christian Andrei, on March 28, 2014

A framework agreement for Dongfeng Motor Group and the French government to inject fresh capital into PSA/Peugeot-Citroen has been signed. The signing of the agreement -- which would result to Dongfeng and France taking matching 14-percent stakes in PSA -- was graced by French President Francois Hollande and visiting Chinese President Xi Jinping.

President Hollande remarked that agreement turns PSA into a carmaker of global dimensions with presence on all markets. He remarked that the partnership is no longer just about selling, but about investing together. The tie-up allows PSA and Dongfeng to further expand their existing Chinese joint venture to co-develop vehicles, hike production as they try to capture a larger share of Chinese vehicle market and sell their offering in Asia.

Incoming PSA chief executive Carlos Tavares is now tasked to turnaround the carmaker’s lossmaking operations in Europe; stop its financial bleeding in Latin American; deliver on its plans in China; and handle its slumping operations in Russia. The agreement had pitted chairman Thierry Peugeot against his cousin Robert over the dilution of the family's stake and loss of control.

Robert Peugeot, who leads the family's holding company FFP, said in a radio interview that it is normal to have discussions and differing opinions “when you pass major milestones.” He noted that when the day for decisions comes, they are taken unanimously.

PSA is banking on China to turnaround its fortunes, vowing to near-triples sales with Dongfeng to around 1.5 million vehicles by the end of the decade. A spokesman disclosed that in PSA’s Chinese venture with Changan, the carmaker expects to sell out its annual production capacity of 200,000 upscale DS vehicles by 2016.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

More positive news has been pouring in before the year ends. For those who have been waiting to hear the latest word on Toyota 86, we have some great news....
by - December 10, 2016
Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
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