French multinational manufacturer of automobiles and motorcycles, headquartered in Rueil-Malmaison, France, with long-cherished subsidiaries such as Peugeot, Citroen, Vauxhall Motors and Opel, had been making preparations of a sell-off of 50 per cent of its stakes in a joint venture with China’s Chongqing Changan Automotive, a spokesman for the French automotive industry leader had unveiled late on Thursday, the 28th of November 2019.
Besides, latest comment from a PSA Groupe spokesman came forth following media headlines that the French carmaker was still looking to a $50 billion merger with the Italian-American carmaker Fiat Chrysler Automobiles NV, which in effect would create PSA-FCA merger the world’s fourth-largest and Europe’s largest automotive industry Goliath.
In point of fact, latest confirmation of a PSA decision to sell-off 50 per cent of its stake at its Chinese JV with Changan came forth a couple of weeks after the Groupe PSA’s Chinese JV partner, Changan had hinted in a regulatory filing in early November that it was looking for a potential buyer for half of its JV with the French carmaker, which used to manufacture autos under Groupe PSA’s DS brand.
Meanwhile, confirming the Changan signal that the JV partners were seeking for a buyer for 50 per cent of PSA’s stake in the endeavour that had begun back in the 2011s to grapple with a waning PSA auto sales in China, the Groupe PSA spokesman said late on Thursday (November 28th), “The two partners plan to sell their stakes in their joint venture.
That does not change anything regarding DS’s presence and development in China, a new strategic plan will be presented in the coming weeks or months. ”