Peugeot presses on tie-up despite split

The Peugeot board insists it will press on with a deal with China's Dongfeng and France that give the nation and the Chinese automaker 14 per cent stakes.

The board of embattled French car maker Peugeot has reiterated that it was pressing on with a tie-up with China's Dongfeng and the French state despite a split on the issue within the Peugeot family.

Reports had emerged that chairman Thierry Peugeot and smaller shareholders were against the restructuring that would bring Peugeot an urgently needed 3 billion euro ($A4.56 billion) cash injection.

The plan would give Dongfeng, the French state and the Peugeot family each a 14 per cent stake in the auto group, which is Europe's second-largest after Volkswagen.

The lifeline project is championed by Robert Peugeot, head of the family's holding company, as well as outgoing chief executive Philippe Varin, the man often blamed for guiding the company into its present turmoil.

Varin, whose contract was extended to March, the brief statement said, is to be replaced by former Renault executive, Carlos Tavares, once the restructuring is complete.

The company is expected to provide more details on the tie-up when it publishes annual results this month and ahead of a visit to Paris by Chinese President Xi Jinping.


1 min read

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Source: AAP



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