PSA, Dongfeng Said To Be Exploring A Partnership
PSA, parent company of Peugeot and Citroen, is said to be exploring a partnership with China’s Dongfeng, as Peugeot looks for ways to strengthen itself amid weak sales and a perpetually sputtering European car market.
Complicating matters is the brand’s alliance with General Motors. GM has a 7 percent stake in PSA and is seen within the company as a key to helping PSA pull through the European crisis, where overcapacity and a need for significant economies of scale are hurting smaller players like PSA. But PSA also wants to follow the lead of rival Renault-Nissan, which has aggressively expanded in emerging markets with Dacia (a runaway success) and now Datsun. Europe is considered a mature market, and emerging markets are one of the only growth sectors left for an established auto maker like PSA (especially given that a North American expansion is off the table, even though it is also a strong market for automobiles).
Currently, the Peugeot family holds roughly 25 percent of PSA’s shares, but any deal with Dongfeng could see them lose their stake – an unthinkable occurrence in past eras.
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"especially given that a North American expansion is off the table" Fill a brother in here -- why is it off the table completely? Fearful that sub-VW levels of reliability just won't sell, or is it something less snide and cynical?
Fill a brother in here - what is that excellent looking car in the article's picture? I really like it!
Chinese vehicles are gaining a strong foothold in emerging economies. PSA is in deep $hit, Dongfeng already is doing business with Nissan. Nissan is doing business with Mitsubishi, who also share a platform with PSA. GM is going to sell a Nissan Platform in the US. It getting more and more complex. Also the Chinese government is treating foreign businesses poorly lately and they are at a disadvantage to the local Chinese businesses. China is a very dynamic market. Anything can and does happen. Is PSA going to bow down to whatever Dongfeng and the Chinese want, to gain a few Euro's that is desperately needs.
Any car company wanting to sell in China has to sell their soul to the devil. A Faustian deal since the only way they can get into the Chinese market is by "partnering" with a Chinese company. China has extremely lax copyright and patent laws so they can easily "borrow" the intellectual property of any global and build their own. The Peugeot in the picture is a good looking car, did someone say diesel powered? Intriguing. I would not want a car called a "Dongfeng". Might not go over well on a first date if your gal asks you what you are driving ;)