European carmaker Peugeot Citroen said it would be looking at new cooperation agreements to come up with cash to fuel its overseas expansion. The second largest carmaker in Europe was looking to invest outside its home turf where demand has been at its lowest in 20 years.

Peugeot Spokesman Jean-Baptiste Thomas said the company was considering the establishment of industrial and commercial development projects with various partners. However, he said, "None of these projects has reached maturity at this stage."

Yesterday, China Business News reported that Dongfeng Motor Corp would be purchasing a 30% stake in Peugeot for CNY 10 billion or USD 1.63 billion. The report said the information came from an official in Dongfeng but did not give a name. Last month, however, Dongfeng and Peugeot said they were in talks to strengthen their alliance.

Should the transaction push through, a Bloomberg report said the proceeds could be used by Peugeot to expand its operations overseas.