Dongfeng: No Quick Decision on PSA Investment

Dongfeng Motor Corp. has hinted that it has no approval yet from the Chinese government to pursue an investment in PSA Peugeot Citroen, Bloomberg News reports.

The company's general manager tells an automotive conference in Wuhan the immediate question is whether taking an equity stake in PSA "is reasonable or not."

Previous reports indicated that the two companies would not move forward with a deal unless they could agree on a mutually beneficial product development plan.

PSA is finalizing a proposal to raise €3 billion ($4.1 billion) by selling 20%-30% stakes in itself to Dongfeng (its partner in China for 20 years), according to Reuters. If such a sale occurs, the news service says, the French government may take an equal equity position in the company.