Car makers say no capital tie-up

• Source: Shanghai Daily
• [08:28 March 04 2010]
• Comments

French car maker PSA Peugeot Citroen and Japan's Mitsubishi Motors Corp yesterday ruled out a capital tie-up after a meeting at the Geneva Auto Show.

In a joint statement, the two car markers said Peugeot Citroen CEO Philippe Varin and Mitsubishi Motors President Osamu Masuko met on Tuesday and decided that a capital alliance "was not appropriate in the current circumstances." But they said they want to broaden the existing cooperation between the two auto makers.

In December the car makers said they were in talks that could lead to a "strategic partnership."

That announcement came after a report in Japan's Nikkei business daily last year which said that the two car makers were in the final stages of capital tie-up talks with Peugeot Citroen looking to buy a 30 to 50 percent stake in Japan's No. 4 auto maker.

Varin has repeatedly said that tie-ups or acquisitions could be possible provided Peugeot Citroen remains independent and the add-ons provide real benefits.