PSA Peugeot Citroën is in talks to sell a significant stake to Chinese carmaker Dongfeng as the French group steps up its fundraising efforts to battle the worst decline in European car sales for two decades.
Europe’s second-largest carmaker by sales is undertaking tough restructuring measures to address its heavy operating losses and rapid cash burn, and has been reaching out for help from Dongfeng and European partner General Motors.
Peugeot told the Financial Times that it was in discussions with potential overseas partners that could invest fresh capital.
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