Struggling French auto company Peugeot Citroën is reportedly slated to receive a 3 billion euro cash injection from China’s no. 2 automaker Dongfeng Motor, solidifying a partnership, as once rumored. PSA aims to present an outline of the deal when it discloses its annual results on February 19.
Last month, General Motors decided to get rid of its 7 percent stake in the struggling French automaker for 250 million euros, but will keep a few commitments — such as two vehicle programs — in place. It was once reported that General Motors wanted to loosen its ties with PSA before Dongfeng got involved, so as to not let the Chinese automaker close to any of its intellectual properties that could be used against GM’s current Chinese joint venture partners that compete with Dongfeng.
A Peugeot-Dongfeng alliance would allow Dongfeng to gain access to a well-known brand in Europe and the advanced technology it needs to help expands its automotive footprint in the great big global auto market of the world, while Peugeot gains access to the coveted Chinese market.
Comment
Peugeot and Citroën may get better access to the Chinese market; both brands of PSA are for several decades already present in China, in joint-ventures with Changan, among others.
PSA suffered from the Peugeot family wanting always to have the final say and control over everything going on, and that ends now, and that is a good thing.
China represents one sixth of all mankind, and needs to represent a sixth of all production and consumption on this planet, shall mankind survive. It is a joy to see the big steps forward China is making to recover from the century she was prey to European, Japanese and US colonialism, and began to stand on its own feet after securing independence during the years 1949-1953.