Peugeot Gets $1.1B Investment From Dongfeng
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.
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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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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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