ID :
93112
Fri, 12/04/2009 - 08:56
Auther :
Shortlink :
https://www.oananews.org//node/93112
The shortlink copeid
Peugeot in talks with M'bishi Motors on capital tie-up+
TOKYO, Dec. 3 Kyodo - French carmaker PSA Peugeot Citroen is in talks with Japan's Mitsubishi Motors Corp. on a capital tie-up and cooperation in developing eco-friendly cars and building vehicles for markets in emerging economies, industry sources said Thursday.
Peugeot may invest 200 billion to 300 billion yen in Mitsubishi Motors to
become the largest shareholder of the Japanese carmaker, the sources said.
Peugeot confirmed the two firms are in talks to expand relations, but the
French carmaker did not comment on a possible capital tie-up.
Peugeot said in a statement that it ''has started discussions with Mitsubishi
Motors concerning the possibility of extending their relationship which could
lead to a strategic partnership.''
If realized, a Peugeot-Mitsubishi alliance would be ranked sixth in the world's
auto industry in auto sales. Their combined vehicle sales came to 4.45 million
units in 2008, including 1.19 million units for Mitsubishi Motors.
It would be the first major capital alliance between Japanese and foreign
automakers since Nissan Motor Co. and France's Renault SA clinched a capital
tie-up in 1999.
Negotiations are under way on the premise that Peugeot will buy new shares
issued privately by Mitsubishi Motors, the sources said. The exact amount of
investment and its timing are still pending.
Mitsubishi Motors plans to use proceeds from the share issue to Peugeot for
buying back for cancellation preferred shares worth some 440 billion yen held
by other Mitsubishi group companies, the sources said.
Mitsubishi Motors hopes to take advantage of the capital tie-up to enhance its
financial base, while Peugeot intends to introduce electric vehicle technology
from the Japanese carmaker, they said.
The Japanese firm incurred a group net loss of 54.88 billion yen in fiscal 2008
through March this year, on sales of 1.97 trillion yen, down 26.4 percent from
the previous year, as the carmaker was hit by a sales slump and the higher yen.
Mitsubishi Motors and Peugeot agreed in March to develop an electric car based
on Mitsubishi's ''i-MiEV'' for the French automaker's brand in a bid to put the
new car on the European market next year.
Mitsubishi Motors signed a capital tie-up deal with DaimlerChrysler AG in 2000.
But they terminated their capital ties in 2005.
The automaker has been undergoing rehabilitation with support from other
Mitsubishi group companies due to its deteriorating business in recent years
following a series of vehicle defect cover-up scandals.
At present, other Mitsubishi group firms hold about 34 percent of voting
Mitsubishi Motors shares, including 15.17 percent owned by Mitsubishi Heavy
Industries Ltd. that is currently the largest shareholder of the carmaker.
These Mitsubishi group firms are expected to hold some stake in the carmaker
even after it forms the capital tie-up with Peugeot.
==Kyodo
Peugeot may invest 200 billion to 300 billion yen in Mitsubishi Motors to
become the largest shareholder of the Japanese carmaker, the sources said.
Peugeot confirmed the two firms are in talks to expand relations, but the
French carmaker did not comment on a possible capital tie-up.
Peugeot said in a statement that it ''has started discussions with Mitsubishi
Motors concerning the possibility of extending their relationship which could
lead to a strategic partnership.''
If realized, a Peugeot-Mitsubishi alliance would be ranked sixth in the world's
auto industry in auto sales. Their combined vehicle sales came to 4.45 million
units in 2008, including 1.19 million units for Mitsubishi Motors.
It would be the first major capital alliance between Japanese and foreign
automakers since Nissan Motor Co. and France's Renault SA clinched a capital
tie-up in 1999.
Negotiations are under way on the premise that Peugeot will buy new shares
issued privately by Mitsubishi Motors, the sources said. The exact amount of
investment and its timing are still pending.
Mitsubishi Motors plans to use proceeds from the share issue to Peugeot for
buying back for cancellation preferred shares worth some 440 billion yen held
by other Mitsubishi group companies, the sources said.
Mitsubishi Motors hopes to take advantage of the capital tie-up to enhance its
financial base, while Peugeot intends to introduce electric vehicle technology
from the Japanese carmaker, they said.
The Japanese firm incurred a group net loss of 54.88 billion yen in fiscal 2008
through March this year, on sales of 1.97 trillion yen, down 26.4 percent from
the previous year, as the carmaker was hit by a sales slump and the higher yen.
Mitsubishi Motors and Peugeot agreed in March to develop an electric car based
on Mitsubishi's ''i-MiEV'' for the French automaker's brand in a bid to put the
new car on the European market next year.
Mitsubishi Motors signed a capital tie-up deal with DaimlerChrysler AG in 2000.
But they terminated their capital ties in 2005.
The automaker has been undergoing rehabilitation with support from other
Mitsubishi group companies due to its deteriorating business in recent years
following a series of vehicle defect cover-up scandals.
At present, other Mitsubishi group firms hold about 34 percent of voting
Mitsubishi Motors shares, including 15.17 percent owned by Mitsubishi Heavy
Industries Ltd. that is currently the largest shareholder of the carmaker.
These Mitsubishi group firms are expected to hold some stake in the carmaker
even after it forms the capital tie-up with Peugeot.
==Kyodo
