Peugeot looks into Dongfeng joint venture expansion
French car manufacturer PSA Peugeot Citroen was reportedly examining various ways of expanding its partnership with China's Dongfeng Motor Corporation.
In an interview with German daily Die Welt, Peugeot chief executive Philippe Varin was quoted saying that it makes sense to expand the Peugeot-Dongfeng partnership.
Peugeot was among the casualties of a six-year European car sales slump. The French car maker is now seeking more cooperation with state-run Dongfeng or another auto manufacturer as it struggles to cut costs and losses, which have threatened its survival, Reuters said in a report.
Meanwhile, French newspaper Le Monde reported this week that Peugeot sought to raise EUR4 billion (GBP3.33 billion) in a share issue to the French government and Dongfeng.
Peugeot has yet to comment on the Dongfeng talks or the capital increase plan, the report said.
Under the Dongfeng Peugeot Citroen Automobile (DPCA) venture, the two car makers jointly manufacture vehicles including the Citroen C5 mid-sized car and Peugeot 3008 minivan, Reuters said.
When asked about Peugeot's financial difficulties, Varin told Die Welt that the French company's credit line were worth EUR11 billion as of June this year. Varin said that Peugeot has enough time to determine the best industrial project for its future.
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