China's second largest carmaker, Dongfeng Motor Co., announced it was 'far' from making any decisions as to investments to be made in PSA Peugeot Citroen after being contacted by several financial institutions.
According to Dongfeng Motor Co Legal and Securities Affairs Department officer Song Hefeng, "We indeed received information from investment banks regarding PSA and we are doing preliminary research on it. We have not come up with any conclusion yet -- far from reaching that point."
As Europe's second largest car manufacturer, Peugeot is considering the sale of a stake in Dongfeng to raise funds to expand beyond its home turf. While discussions are still at a preliminary stage, individuals familiar with the negotiations had said early September. The sale may force the Peugeot family, with its 25.5% ownership, lose control over the firm.
There is also a separate joint venture between Peugeot and Chang'An Automobile Group where the main investment would go into the construction of a fourth factory located in the city of Shenzhen tomorrow.
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