Peugeot (UG.EPA) and Dongfeng Motor Group (0489.HK) signed a deal on Wednesday to extend their existing Chinese joint venture, giving Peugeot greater access to China’s growing car market, Reuters reported. State-owned Dongfeng and the French government agreed to each take a 14% stake in Peugeot, raising US$4.1 billion for the cash-strapped French car manufacturer. The deal will also allow the joint venture to co-develop vehicles, ramp up production and export their cars around Asia. This deal comes as the company tries to turn around unprofitable European operations and deliver on China plans that many consider ambitious.
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