DNFGY Dongfeng Motor Group Company Ltd (PK)

French car company PSA Peugeot-Citroen is considering a deal with its China partner Dongfeng, according to French daily Les Echos on Tuesday.

The struggling French company has hired two banks to advise it on a capital link, the newspaper said. Peugeot wants to expand its international presence while also keeping its alliance with General Motors, the newspaper said.

Should GM object to a capital link between Peugeot and Dongfeng, the French company could form a joint venture with Dongfeng that would concentrate on emerging markets, Les Echos said.

Newspaper website: www.lesechos.fr

Write to Dennis Baker at dennis.baker@wsj.com

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