PSA and Dongfeng Agree to Alliance

PSA Peugeot Citroen and Dongfeng Motor Group have agreed on the main terms of an alliance that will be backed by a $4.1 to $5.5 billion capital injection for the French automaker.

The two companies are in discussions to build on their existing Chinese joint venture in hopes to cooperate in other markets with the funding allowing Dongfeng and the French government to acquire stakes in PSA Peugeot Citroen.

SEE ALSO: Dongfeng Might Buy Big Stake in PSA

Rumor has it that the two automakers are planning joint production of compact cars for Southeast Asian markets.

[Source: Automotive News]

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