PARIS--Ailing French car maker PSA Peugeot Citroen (UG.FR)
Monday confirmed it is talking with possible partners for new
industrial or commercial projects that will likely have financial
consequences, though it said no agreement has been reached yet.
The company didn't identify any of the potential partners it is
talking to.
Peugeot Citroen released the statement hours after The Wall
Street Journal reported the company's board will later this month
consider a potential capital injection from Chinese partner
Dongfeng Motor Corp. (0489.HK).
Battered by dwindling sales in Europe, its core market, Peugeot
is continuing to rack up losses and is burning cash that it badly
needs to develop new products and expand its industrial footprint
outside Europe.
Peugeot's board meeting, set for Oct. 22, comes after months of
talks with Dongfeng about a potential expansion of their existing
partnership outside China, including an investment in Peugeot,
people familiar with the matter said.
The French government could also participate in a capital
increase alongside Dongfeng, to help fund its development projects
after 2016, though Peugeot hasn't formally asked it to do so, one
of the people added.
-David Pearson contributed to this article.
Write to Inti Landauro at inti.landauro@wsj.com
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