Peugeot board approves partnership with Dongfeng

The board of French car manufacturer PSA Peugeot Citroen (UG.EPA) has approved a contentious survival plan that points to the partnership with Dongfeng Motor (0489.HKG), Reuters reported. In a blow to Chairman Thierry Peugeot, who had championed an alternative plan, the board agreed in principle to a capital increase that would see the Chinese state-owned carmaker and French government acquire minority stakes and the family cede control, sources familiar with the matter said on Monday. Peugeot confirmed in a statement that it was looking to raise US$4.1 billion in a deal with Dongfeng, after unveiling a further 4.9% decline in global vehicle deliveries for 2013 earlier on Monday.