PSA Peugeot Citroen Bailed Out By China’s Dongfeng, French Govt
PSA Peugeot Citroen has been given a €1.6 billion financial rescue package from the French Government and China’s Dongfeng Motor Group this week as part of a three billion euro fundraising for the giant carmaker. Each is chipping i
PSA Peugeot Citroen has been given a €1.6 billion financial rescue package from the French Government and China’s Dongfeng Motor Group this week as part of a three billion euro fundraising for the giant carmaker.
Each is chipping in €800 million (AU$1.2 billion) for 14 percent of the company, matching the Peugeot family’s reduced holding and ending more than a century of control by the family.
With a loss last year of €2.32 billion, PSA Peugeot Citroen has warned that it will likely continue to lose money until 2016.
A further €1.4 billion (AU$2.1 billion) will come from established PSA investors.
The rescue package will enable the carmaker to invest in hybrid technology and low-cost cars, as well as expand its reach into Mediterranean and Asian markets.