Home / Auto News / News article: Peugeot gets $1.1B Investment from Dongfeng - AutoGuide.com News
 |  Feb 19 2014, 8:32 AM

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Peugeot PSA Citroen will get a three-billion Euro injection backed in part by Chinese stakeholder Dongfeng.

Dongfeng has agreed to contribute $1.1 billion for a stake in the French automaker and the deal will end over two centuries of effective control by the Peugeot family. In addition, the French government will also invest $1.1 billion and each party will receive 14 percent stake. The Peugeot family’s stake will also be at 14 percent and the deal is likely to be formally signed by March.

SEE ALSO: PSA and Dongfeng Agree to Alliance

As a result of the deal, Dongfeng is expected to promote the Peugeot brand in the fast-growing Asian auto markets while an increase in production and a new research and development center are also a possibility. The venture hopes to achieve the objective of selling 1.5 million vehicles under the Dongfeng, Peugeot SA and Citroen brands annually starting in 2020.

[Source: The Associated Press]

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