PSA Denies Alliance Talks with Mahindra

PSA Peugeot Citroen denies a report by the Times of India saying the company is discussing a partnership with India's Mahindra & Mahindra Ltd.

The Times cites unidentified sources who claim PSA is in talks about a strategic partnership with Mahindra that would involve "significant investments" related to technology swaps and shared production capacity in France and India.

PSA insists it is "not in discussion with anybody" about a "rapid return" to India. The company ended local production in India 13 years ago.

In 2012 PSA's mounting financial woes forced it to halt plans to open a €650 million assembly plant in Gujarat this year. The facility was to make Peugeot 508 family sedans at an annual rate of as many as 170,000 units.