PSA Peugeot Citroen (UG.EPA) is in talks with Chinese automobile manufacturer Donfeng Motor (0489.HKG) about a possible stake sale as the French auto group seeks funds, Financial Times reported. The China Business News on Tuesday also reported that Dongfeng planned to buy a 30% stake in Peugeot for US$1.6 billion (RMB10 billion), citing unnamed sources from within the company. 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 partner General Motors (GM.NYSE).
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