PSA proposes two plans for the alliance Dongfeng

It is reported that PSA is considering establishing a capital partnership with China Dongfeng Motor Group and has hired two banks to serve as advisors to Dongfeng Motor’s capital cooperation program.

However, it is precisely because PSA has a major shareholder of General Motors. It is not known whether PSA and Dongfeng Motor can successfully achieve capital alliance. Previously there were rumors that China Dongfeng Motor Group may acquire a 30% stake in PSA Group, which has not been confirmed by both parties.

Hands ready <br> <br> program as the second largest shareholder of PSA, General Motors, PSA can not be willing to lose this important ally, but the European market doldrums, the Chinese market last year, a loss of 5.01 billion euros for the PSA, it also has Ineffable importance. According to the above report, in order to strengthen Peugeot Citroen's international business performance while maintaining its current alliance with General Motors, PSA proposed two options.

One of the options is Dongfeng Group’s direct holding of PSA shares through capital increase, but the plan may cause GM to be unhappy. Another option is to establish a joint venture with Dongfeng Motor and clearly define the market area between Dongfeng and GM: Dongfeng and PSA's joint ventures, which are exclusively focused on emerging markets, and GM's focus is on the European market.

However, foreign media believe that PSA will pay more attention to the alliance with General Motors. In an article published on Reuters on September 20, he said, “If it finally becomes necessary to make a choice between GM and Chinese capital, Peugeot should prefer to choose Western rather than Eastern.” On February 29, 2012, PSA and General Motors formed an alliance. General Motors spent 300 million euros (about 432 million U.S. dollars) to acquire about 7% of PSA Peugeot Citroen.

A 30% stake has not been confirmed <br> <br> said there were rumors that early PSA Peugeot family, currently the largest shareholder in June (PSA Group owns 25.4% of the shares and 38.1% of voting shares) is likely to give up control of the company Right, China Dongfeng Motor Group may acquire a 30% stake in PSA Group. However, the rumors have not been confirmed by both parties.

If you can take advantage of the powerful Dongfeng, of course, it's better for PSA. PSA has suffered huge losses year after year, of which production and sales are concentrated in Europe is a major problem, PSA revenue still more than two-thirds from Europe, and Europe is the world's current weakest car market. Therefore, PSA is now particularly optimistic about emerging markets, especially the Chinese market, to resolve this deadly structural weakness.

According to the 2012 financial report released by PSA, its global sales fell 16.5% to 2.965 million vehicles.

Yesterday, relevant personage of Dongfeng Motor Group stated: "The company has paid attention to media reports but does not comment."