Dongfeng denies rumors that it will purchase PSA stock

Gasgoo.com (Shanghai July 3) - Recent reports in the overseas media speculate that PSA Peugeot Citroën's largest shareholder, the Peugeot family, may yield its controlling share to General Motors. Meanwhile, other rumors have appeared that PSA will transfer 30 percent of its stock to Chinese manufacturer Dongfeng Motors. However, according to a report appearing in the Beijing Youth Daily, Dongfeng has no plans to purchase PSA stock.

In an official response on the issue, a representative from Dongfeng stated that the manufacturer "has no comment… on the rumor."

The abovementioned foreign reports speculate that the Peugeot family would make an offer to Dongfeng if they are unable to sell stock to GM. In 2012, PSA announced a strategic partnership with GM, when the latter purchased seven percent of PSA's total stock, becoming its second largest shareholder. However, there doesn't seem to be any indication that GM has plans to further invest in the French manufacturer.

Dongfeng currently possesses individual joint ventures with Peugeot and Citroën, while Changan possesses a JV with PSA. When asked about the issue, Changan also denied involvement, stating that it "has no plans to purchase PSA stock at the current time."

PSA, one of the world's ten largest automakers, has suffered heavily from the Eurozone credit crisis, with its sales falling 16.5 percent in 2012. That same year, the manufacturer reported suffering a net deficit of 5.01 billion euros ($6.53b), with its sales in Europe decreasing 14.8 percent.