After so many rumors that have been doing rounds for months now, PSA Peugeot-Citroen has now officially confirmed that have done a tie-up with China’s Dongfeng Motor Group.
The details are a little technical but Dongfeng and the French government will together make an investment of € 800 million (approx USD 1 billion) into the troubled automaker. In return, both will receive a 14% stake in PSA Peugeot-Citroen.
The venture also calls for the creation of a joint research and development center as well as the licensing of technologies developed by PSA Peugeot Citroën. The agreement also calls for the creation of a new joint venture to drive the sales of PSA Peugeot Citroën and Dongfeng vehicles in the rest of Asia and possibly in other emerging markets.
Well these are good signs for not only PSA Peugeot-Citroen but other car makers as well as the industry is certainly going through some rough patches and such investment will give a lot of boost to other makers as well. We also hope that the agreement will help the cause of the both the parties and PSA Peugeot-Citroen is able to deliver of what it is capable of.