China's Dongfeng invests in Peugeot

China's Dongfeng invests in Peugeot

Chinese carmaker Dongfeng said today it will invest €800m in France’s Peugeot and expand cooperation in China’s fast-growing market.

The agreement would give struggling PSA Peugeot Citroen much-needed capital while state-owned Dongfeng Motor Company gains access to a well-known brand and advanced technology to help expand its share of the Chinese car market.

Dongfeng said the Chinese company, the French government and the Peugeot family will own equal stakes in Peugeot and each is expected to gain equal voting rights.

Chinese companies, cash rich from the country’s economic boom, are increasingly acquiring stakes in foreign brands to improve their competitive edge at home and diversify by expanding abroad.

Dongfeng said the French government is expected to buy the same number of shares as it on the same terms.

That would bring Peugeot at least €1.6bn, less than the €3bn it said earlier it hoped to raise.

Dongfeng said it and Peugeot will expand cooperation in technology, research and development, manufacturing and overseas distribution.

Dongfeng is one of China’s biggest car producers but is largely unknown abroad.

In addition to its joint venture with Peugeot, it assembles vehicles for Japan’s Nissan and Honda and manufacturers cars and trucks under its own name.

The agreement came after General Motors sold its 7% stake in Peugeot in December.

More in this Section

Coronavirus: Global oil demand to fall first time in a decadeCoronavirus: Global oil demand to fall first time in a decade

Four Star Pizza raises dough for UK expansionFour Star Pizza raises dough for UK expansion

Five Guys records €1.1m lossesFive Guys records €1.1m losses

More weedkiller lawsuits but this time it’s not RoundupMore weedkiller lawsuits but this time it’s not Roundup


FOR many of us, health insurance is high on the list of financial products which that we tend to avoid changing out of fear and confusion.Money and Cents: cover all the bases for best health insurance

Anya Taylor-Joy plays the titular Emma in the latest adaptation of Jane Austen’s romantic comedy about the spoilt, meddling matchmaker who means well, says Laura HardingAnya Taylor-Joy: ‘Emma is my little monster’

Setting sail to travel the world as part of your job has a romance all of its own but for marketing manager Máire Cronin and engineer Mark Crowe it led to love.Wedding of the Week: Cruise ship co-workers Máire and Mark sail off into sunset

One of the genres that has seen exponential growth in the podcast world is the sleepcast. Open Spotify on your phone in the evening and a number of offerings are available, writes Eoghan O'SullivanThe Podcast Corner: podcasts that will put you to sleep

More From The Irish Examiner