Dongfeng spends £660m + equal French Govt to take 28% of the struggling company.
Peugeot Cintroen have been lsoing billions for the last few years.
www.bbc.co.uk/news/business-26243593
Is this another MG/Rover?
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>> Is this another MG/Rover?
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Not IMO. PSA have a pretty good product line up now and have continued to invest in new models where MG just kept renaming and rebadging old models.
They have a good diesel line up, and the new joint BMW petrols are nice units.
They were late coming to the China market though. Their range was biased towards diesel hatch's to suit the Europeans, whereas China like petrol saloons.
Anyway, the French Govt will not allow it to fail where the Labour Govt were well aware of what was happening and decided to just stand by and watch
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>> Is this another MG/Rover?
No, as bad as french cars got, they never matched the low point of BL.
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As others say some way from being an MG Rover scenario. Unlike MG-R PSA have a good range of products, more in pipeline and a good R&D budget. Suffering from recession in Home market and need to control costs.
Provided the three main shareholders (Peugeot family. Chinese and French State) can pull in same direction recovery is possible.
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>>Is this another MG/Rover?<<
Depends if it ever makes a profit. Eventually the will to pour money down the drain ceases so it is a case of whether profit or giving up on it comes first but you can guarantee the French will try longer than most.
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>> three main shareholders (Peugeot family. Chinese and French State)
I thought I saw something in a running strip at the bottom of one of the news channels last night that said the Peugeot family had sold their entire shareholding to the French government.
Peugeot 404 and 504 were very strong jalopies, and there were other very good models in the old days (204 was great and so was the 205). They haven't been so likeable in recent years.
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From BBC
"Struggling French carmaker PSA Peugeot Citroen has sealed a long-awaited rescue deal that will see its founding family cede control of the company.
Should the deal be approved, the Peugeot family's 25.4% stake will be diluted to 14%, matching that of the French government and the Chinese carmaker."
Only lost 2.3bn in the last year - thats less than half of the previous years losses!
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>> Peugeot family's 25.4% stake will be diluted to 14%, matching that of the French government and the Chinese carmaker."
That looks as if someone else will own the other 58%... shome mishtake shurely?
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Peugeot - Rescued by Dongfeng Motors + French Govt - mikeyb
