Dongfeng 800 million euros stake in Peugeot Citroen into the largest shareholder


Yesterday, Dongfeng Motor Group Co., Ltd. (Dongfeng) announced that on the 18th, Dongfeng and the French government, the holding company of the Peugeot family and the Peugeot Citroen Group (PSA) formally signed a memorandum of understanding. Dongfeng and the French government intends to inject capital respectively. 800 million euro shares PSA. After the transaction is completed, Dongfeng, the French government and the holding company of the Peugeot family will become the largest shareholder of PSA. The three parties will hold approximately 14% of the shares.

According to the memorandum of understanding, of the 14 seats of the PSA board of supervisors, except for six external independent supervisors, Dongfeng will occupy two seats. The representatives of the French government, the Peugeot family, employees and employees will each have two seats. More influential is that the composition of the committees of the board of supervisors and the chairman will be revised, with the Asian Development Committee chaired by the representative of Dongfeng.

Dongfeng and PSA also signed a framework agreement to strengthen cooperation in the industrial and commercial fields. The two sides will increase cooperation in technology research and development, procurement, manufacturing, and marketing, increase the scale of the platform, increase the scale effect of the core powertrain, increase the efficiency and level of research and development, and implement strategic synergy across the entire value chain to further enhance Dongfeng PSA's international competitiveness.

The signing of the above-mentioned memorandum of understanding and framework agreement marks the first time that Chinese auto companies have strategically acquired shares in world-renowned auto companies. Dongfeng’s shareholding in PSA is one of the world's largest and fastest-growing auto market leaders in China. It is a strong partnership with world-renowned auto groups and is a landmark for Chinese auto companies to “go global” and actively participate in international competition.

Dongfeng and PSA will further deepen their global value chain cooperation. The cooperation plan includes setting up a full-value chain R&D center in China, committing to the joint development of new automotive technologies and new products, mainly providing research and development services for Dongfeng, PSA, and Shenlong Motor Company; establishing an overseas sales company responsible for PSA and Shenlong Motor Company. The products are sold and serviced in Asia, especially ASEAN, and are synergistic in other overseas markets.

People in the industry believe that the strategic cooperation between Dongfeng and PSA will enhance their global competitiveness. The two sides will exert synergistic advantages in such areas as technology research and development and sales network, and will promote the rapid transformation and upgrading of Dongfeng passenger vehicle's technological capabilities, and the technical system will be directly integrated with the international community and promote the long-term sustainable development and large-scale export of Dongfeng passenger vehicles. At the same time, cooperation will also help PSA optimize the market structure and get rid of the development difficulties encountered after the European debt crisis erupted.


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