dongfeng-psa

Dongfeng Motor Corp may buy a 30% stake in troubled partner PSA Peugeot Citroen for 10 billion yuan (RM5.19 billion), China Business News has reported, and PSA has told Automotive News Europe that it is looking at new projects with different partners, "including the financial implications that would accompany them."

Dongfeng is reportedly doing preliminary research on the PSA investment. If it goes ahead with the deal, it will become PSA's biggest investor as the Peugeot family currently holds a 25.5% stake.

"We have a partnership with Dongfeng and we are looking at how we can expand it, but nothing more has been decided," a PSA spokesperson told ANE.

"The two main questions are: how much do they need and where will they find the money?" CM-CIC Securities analyst Florent Couvreur said. "I'm betting they need about 2 billion euros to face their debt obligations in 2014."