24 April 2019

Dongfeng still weighing benefits of Peugeot deal, Reuters says

China’s Dongfeng Motor Group is still weighing the benefits of investing in loss-making PSA Peugeot Citroen, Reuters quoted a top Dongfeng executive as saying. PSA is preparing a 3 billion euro (US$4 billion) capital increase, in which Dongfeng and the French government will each contribute 1.5 billion euros and acquire 20 to 30 percent of the troubled French carmaker, sources with knowledge of the plan told Reuters earlier this month. The sources added that Peugeot hopes to conclude the deal this year. However, at an industry forum in Shanghai at the weekend, Dongfeng’s general manager Zhu Fushou suggested that China’s second-biggest vehicle maker is not in a hurry to make that investment, Reuters said. “If we can complement each other’s advantages, if we can achieve synergies, we may go ahead to do it. Otherwise, we would not do it,” Zhu was quoted as saying.

– Contact HKEJ [email protected]



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