Dongfeng, PSA Pursue Closer Ties

PSA Peugeot Citroen tells reporters in China it is examining "all cooperation options" to expand its 20-year-old partnership with Dongfeng Motor Corp.

The statement comes a day after Dongfeng said it might invest in PSA but is not near a decision, Bloomberg News reports.

Earlier this month the news service cited unnamed sources who said PSA was pondering an equity sale to Dongfeng to help fund its plan to expand into markets outside Europe. But PSA CEO Philippe Varin told reporters on Saturday that the companies won't consider financial options until they agree on a joint vehicle development project.

PSA and Dongfeng currently operate three assembly plants in China with combined annual capacity to make 950,000 vehicles. Bloomberg notes that PSA sold fewer than half that number of cars in China last year.