PSA, Europe’s second-largest carmaker, taken over by two governments

 

They make those too

Dongfeng makes those too

As the Chinese New Year (where all of China pretty much shuts down for pretty much a month) edges closer, the deal to provide PSA Peugeot Citroen with a desperately needed capital injection is edging closer. The bottom line is that PSA will be saved by two governments, the French and the Chinese. The French do the deal to preserve jobs and prestige. It will be interesting to see what the Chinese will make out of it. [Continue Reading]

PSA and Dongfeng: Beware of Chinese dragon stories

The Dragon Slayer - Picture courtesy wallpaperama.com

Why fight – let’s split the bill instead

 

Gullible blogs reported end of last week that China’s Dongfeng is buying 30 percent of cash-strapped PSA. This after China Business News said that it’s true. Not so fast, said PSA today. The French automaker confirmed that “it is examining industrial and commercial developments with different partners, including the financial implications that would result from them.” However, “none of these projects has reached maturity yet.” [Continue Reading]

Chinese rumors: Dongfeng ready to pay 10 billion for 30 percent of PSA – in Chinese money

Chinese abacus 2 - Picture courtesy ebay.com

It’s interesting to see how different cultures react to the same non-news: In Europe the continuous drip of remarks about a possible partial sale of PSA to China’s Dongfeng is being met with Gallic shrugs, or whatever shrugs they have in other parts of Europe. The blasé EU thinking is that it’s a PR maneuver to cow the French government and the French unions into accepting painful cuts to ward off the yellow peril.  Steve Girsky’s recent remarks to Reuters,  in which he said that GM won’t  be in the way should PSA couple with Dongfeng, fit into this scenario. GM wants the European bleeding stopped, it doesn’t want a new competitor in China.  The Chinese have a completely different view.

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