PSA Peugeot Citroen told Reuters it is not true that it is low on cash, and that it needs to ask shareholders for an infusion. France’s La Tribune says that Peugeot is looking at a capital raise after burning through 2.5 billion euros ($3.23 billion) of cash in the past year.
“A capital increase is not on the agenda since the financial security of the group … is at a high level and was reinforced in the first quarter by the success of bond issues,” a PSA spokesman told Reuters, pointing to the 7.3 billion euros in cash reserves and 3.2 billion in undrawn lines of credit the group had as of the end of last year.
PSA, a partner of GM, does not expect a return to profit until 2015. Peugeot entered wage negotiations with the unions.