By David Pearson
PARIS--French car maker PSA Peugeot Citroen (UG.FR) reaffirmed
Wednesday that it is studying new industrial and commercial
projects with partners, and that discussions include finding ways
for the cash-strapped group to finance these projects.
However, a spokesman for Europe's second-largest automotive
group by volume wouldn't comment on an unsourced report in the
Chinese Business Daily that Dongfeng Motor Corp. (0489.HK), China's
second-biggest auto maker and one of Peugeot's two existing Chinese
partners, stands ready to take a 30% stake in the family-controlled
French group for $1.6 billion.
"We are studying several industrial and commercial projects with
different partners," the spokesman said, and the financial aspects
of these projects is part of these discussions. However, the talks
are at a "very, very preliminary" stage, he said.
As sales have tumbled, Peugeot has explored various ways to
raise cash and speed its development outside Europe. One option has
been to deepen and broaden its industrial partnership with General
Motors Co. (GM), according to people familiar with the matter.
Another option has been to expand Peugeot's relationship with
Dongfeng outside China, those people said earlier this year.
The talks have been underway for months, but as recently as the
summer had slowed down. It is unclear if they have since
accelerated.
Peugeot Chief Executive Philippe Varin said in an interview in
July that the priority for his struggling company "is to deepen our
industrial projects, either alone or with partners."
Dongfeng co-owns two vehicle-assembly plants with Peugeot in
China, and people familiar with the matter told The Wall Street
Journal earlier this year that a potential direct investment by
Dongfeng in Peugeot has been discussed as part of a move to further
cement their partnership.
--Sam Schechner in Paris contributed to this article.
Write to David Pearson at david.pearson@dowjones.com
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