PSA Confirms Pursuit of Closer Ties with Dongfeng

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

Earlier this month Bloomberg News cited unnamed sources who said PSA was studying the option of funding an overseas expansion in part by selling a stake in itself to the Chinese carmaker. Bloomberg said Dongfeng confirmed on Friday it might invest in PSA but is not near a decision.

CEO Philippe Varin told reporters on Saturday that the companies, which currently operate three assembly plants in China, won't consider financing options until they agree on a joint vehicle development project.

PSA currently has capacity to make as many as 950,000 vehicles per year in China, more than double its sales there last year, Bloomberg says.