Peugeot-Citroen canned its plans to take a substantial stake in Mitsubishi
By Andrew C., 26 Aug, 2010. 0 Comments
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Peugeot Citroen has decided not to acquire a substantial stake in Mitsubishi. At the Geneva Motor Show earlier this week, PSA's chief executive Phillippe Varin and Mitsubishi president Osamu Masuko had talked. In an interview, Varin says that the terms for the planned deal had not been met. According to financial sources, PSA is thinking about taking between a 30% and 50% stake in the Japanese car maker, and could spend up to £2.2 billion. PSA sources say that the tie-up plans are over. Peugeot Citroen sought to build an alliance, which would help give it a global footing as it moves to lessen its dependency on the European market. Shares of Mitsubishi plunged as the markets raised fears that it requires major cash infusions to survive. Mitsubishi's sales dropped by over 50% in the last decade. Currently, Peugeot uses a modified version of the Mitsubishi Outlander compact SUV as its 4008 model and the Citroen C-Crosser. It also offers a version of Mitsubishi's innovative i-MiEV electric car as the Peugeot iOn and Citroen C-Zero.
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