Peugeot considers sale to Dongfeng Motor

18 Sep, 2013 12:46pm Jonathan Burn

Peugeot is considering a tie-up with Chinese car maker Dongfeng Motor

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.

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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.

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Thats surely a good thing so they can get some extra cash for future models and devolopment.. I notice PSA are selling shares in Peugeot not Citroen..

Can't think of anything worse than a French/Chinese fusion car although I would consider one at the right price.

They should just call it a day if you ask me, they used to make excellent FWD cars, then some idiot must have either taken over the company or the styling dept...too late now, they had it and they squandered it.

More stupid ugly grilles on the way then!!

They are selling shares in PSA, which has, as its largest shareholder, the Peugeot family, there are no separate Citroen/Peugeot shares, so it is as a whole entity that the share are being sold as.