French trade unions said they are open to the prospect of the state taking a stake in loss-making auto-maker PSA Peugeot Citroen but said the key question was the survival of local jobs and control of the group. They were reacting on Saturday after sources with knowledge of the matter told Reuters PSA was preparing a 3 billion euro ($4 billion) capital increase in which Chinese partner Dongfeng Motor and the French government would take matching stakes in the troubled carmaker.
Under the draft agreement, which Peugeot hopes to conclude this year, state-owned Dongfeng and the French government would each contribute 1.5 billion euros and acquire 20 to 30 percent of the carmaker, the sources who asked not to be identified said.
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