China& s Dongfeng French state invest in Peugeot www wftv com

14 Июн 2014 | Author: | Комментарии к записи China& s Dongfeng French state invest in Peugeot www wftv com отключены
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Loss-making carmaker PSA Peugeot Citroen is a 3 billion-euro ($4.1 billion) backed by Chinese investors and the taxpayers in a deal that see the company’s founding family over control after than two centuries at the helm.

automaker Dongfeng and the French are each investing 800 million ($1.1 billion) in Peugeot, out the struggling French auto and possibly expanding its global

Plans call for Dongfeng Co. the French government and the Peugeot each to own equal 14 percent in PSA Peugeot Citroen and to have voting rights, Dongfeng in a statement Wednesday. More will come from a offering, in which stakeholders be able to buy three new shares for 10 they own.

Outgoing Chief Executive Varin called the change in ownership a new page in the history of the It’s one that could have been predicted a few years ago, when the independent Peugeot family a previous government bailout was quickly snapped up by rival itself partly government

Investors welcomed the operation, up Peugeot shares 2.6 percent by in trading on the Paris stock

Varin is being replaced at the end of by Carlos Tavares, a former top at Renault. At a news conference, thanked Varin for creating the for our rebound, which partly on plans to position Peugeot and as more upmarket brands.

that ambition with the arrival of new Chinese owners be one of the new CEO’s principal challenges.

The deal reflects an increasingly strategy among Chinese which are buying stakes in foreign brands to improve competitive edge in their home market.

China’s market is the world’s biggest by of vehicles sold but is crowded and with every global and two dozen indigenous automakers for sales.

Dongfeng said it and will expand cooperation in research and development, manufacturing and distribution. They will a formal agreement in March and work on their strategic

Wednesday’s brief announcement no additional details, including how the owners will manage a unwieldy structure with to both the French and Chinese

While it is clear Peugeot much-needed capital, from the side, the objective still is a bit vague, said industry Yale Zhang of AutoForesight in We don’t know if there are terms about transfer of

Peugeot, which manufactured its gasoline-powered automobile in 1890, is biggest automaker and Europe’s after Volkswagen AG, but has little in the United States or East It has developed models for China, its 408 sedan, and has a joint venture Dongfeng, but barely ranks the country’s top 10 brands in sales.

on the other hand, is one of China’s producers of cars and trucks but is unknown abroad. Founded in and headquartered in the central Chinese of Wuhan, it currently has a small venture with Peugeot and vehicles for Japan’s Nissan Co. and Honda Motor Co.

Illustrating its for help, Peugeot’s earnings — which were also Wednesday — showed a net loss of 2.3 euros in 2013, following a 5 billion-euro loss in 2012.

Earnings were hammered by new costs and impairment charges to for the diminishing value of Peugeot assets.

The automotive division a 4.8 percent drop in revenue, as the of new Peugeot and Citroen badged and light trucks slumped 5 percent.

Peugeot says it the European auto market to about 2 percent this and about 10 percent in China.

by the Dongfeng Peugeot Citroen venture rose 25 percent year to 554,000 vehicles, for a 3.5 share of the market, according to LMC Ltd. a research firm. By VW and its main Chinese partner had a 9.9 market share last and GM and its main partner had 9.8 percent.

Total auto sales in rose last year by percent despite a steady in growth in recent years. is expected to fall further year to 8 to 10 percent, still above levels forecast for the States, Europe and Japan.

The statement’s reference to cooperation Peugeot in overseas distribution the possibility their joint might export vehicles, an step in China.

Global that want government to manufacture in China are required to through local partners. ventures usually focus on domestic market and avoid that would compete the global brands’ operations The only major exception is a by GM and its main Chinese partner in to sell cars developed in

The Dongfeng-Peugeot ownership ties help clear the way to exports by potential financial conflict the French partner’s factories said Zhang.

Once their shareholding is they can share profits they are one big family, he said.


Press writer Greg in Paris contributed to this



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