Peugeot is considering selling a stake of the company to Chinese car manufacturer Dongfeng Motor in an attempt to raise cash for an expansion of the brand and help boost profits.
No official statement from Peugeot has been made as yet but reports suggest talks between the two manufacturers are at a preliminary stage. The Peugeot family currently owns 25.5 per cent of the company’s shares, but the sale could lead them to lose control of the French company.
Shipping cars to emerging markets such as China, Russia and Brazil is becoming a vital part of manufacturers' strategies to help bolster sales and increase revenue. Peugeot's European car sales fell by 18 per cent last month, taking its overall market share down to 11 per cent. Peugeot announced first half-year operating losses of £426 million.
Peugeot already has a partnership with Dongfeng Motor as the pair will set about opening their third assembly plant in China next year. Talk of the tie-up between Peugeot and Dongfeng Motor increased the French manufacturer's shares value on the stock market by 3.5 per cent.