Dongfeng CEO dismisses possible control of PSA

Article by Christian A., on March 16, 2014

Dongfeng Motor has no intentions to take control of PSA/Peugeot-Citroen, chief executive Zhu Fushou has said as he tries to dismiss a controversy over a planned purchase of a 14 percent stake in the French carmaker. In an interview with L'Alsace newspaper, Fushou said that Dongfeng's investment in PSA is a long-term strategy that will help the French carmaker increase sales outside Europe while allowing the Chinese group to compete better with local rivals in China.

Fushou noted that the agreement is a “win-win cooperation,” adding that it is not a purchase deal but a way to help PSA return to growth. PSA unveiled in February a EUR3 billion ($4.1 billion) capital hike in which Dongfeng and the French state will pour in EUR800 million for 14 percent of the carmaker.

The deal will have the founding Peugeot family's stake drop to 14 percent from the current 25 percent holdings and 38 percent of voting rights. According to Fushou, the stake purchase of Dongfeng and the French government will allow PSA to meet its cash requirements for the next three years while it tries to develop markets outside Europe and implement a recovery plan.

He said that Dongfeng and PSA targets to hike annual vehicle sales at their Chinese joint venture to 1.5 million from 550,000 in 2013. "The goal is not limited to the Chinese domestic market, it is also conquer the whole Asia-Pacific market," Fushou said.

He remarked that Dongfeng will help PSA cut its reliance in Europe to less than 50 percent of total sales from the current 62 percent. On the hand, PSA will help Dongfeng better compete with Chinese rivals. Dongfeng launched its own brand in 2009 and sold over 650,000 vehicles in 2013. [source: automotive news - sub. required]

If you liked the article, share on:

Topics: dongfeng, ceo, psa

Comments

Recommended

The Chinese market will soon be getting the exclusive China-only model, Mercedes-Benz GLC-L, for a premium of 15,000 yuan ($2,300) more than the regular model. The difference is actually quite...
by - January 20, 2018
The Bentley Bentayga is set to participate in the famous Pikes Peak International Hill Climb that is slated to take place on June 24th in Colorado. The automaker’s motorsport department...
by - January 19, 2018
Infiniti will commence sales of the new 2019 Infiniti QX50 in the spring, with a starting price of $36,550. But before the big launch, Infiniti has introduced a new reservation...
by - January 18, 2018
BMW fans may be surprised with what the car manufacturer’s boss Robert Irlinger said in a recent interview with Autocar during a recent media meeting. And this is the fact...
by - January 18, 2018
Currently, there aren’t any Lexus convertibles out in the market, but it seems like it won’t be too long until we see one again. This is because Toyota’s premium brand...
by - January 18, 2018
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