DongFeng study to sell its stake of Peugeot-Citroen.

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Thread: DongFeng study to sell its stake of Peugeot-Citroen.

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    DongFeng study to sell its stake of Peugeot-Citroen.

    I saw via a post on Allpar some articles then DongFeng study the possibility to sell its stake of PSA(Peugeot-Citroen) due to the economic situation in China.

    https://www.washingtonpost.com/busin...?noredirect=on
    https://europe.autonews.com/automake...sense-dongfeng
    PSA Group's relationship with Dongfeng looks set to change as the Chinese automaker examines options for its 12.2 percent stake in the French company, that could include a sale or bond issuance backed by the stock, people familiar with the matter told Bloomberg.

    On purely financial terms, such a move makes a great deal of sense. Dongfeng bought the shares as part of a 2014 bailout of PSA, brokered by the French government. That investment has done rather well: PSA has seen the third-best share performance in Bloomberg's Global Automobile Valuation peer group over the past five years, after Geely Automobile Holdings and Fiat Chrysler Automobiles. The 800 million euros ($897 million) Dongfeng spent at the time is now worth around 2.2 billion euros.

    On top of that, the operational ventures that underpinned the shareholding have seen better days. Listed subsidiary Dongfeng Motor Group's sales of Peugeot- and Citroen-branded cars fell by about half in the first six months from a year earlier and are running at less than a quarter of their level in 2015. In the key crossover SUV market, models like Citroen's C5 Aircross and Peugeot's 4008 have simply failed to catch fire against competition from Asian and domestic rivals.
    There's also some French articles on the subject.
    https://pro.largus.fr/actualites/psa...s-9922390.html
    https://www.leblogauto.com/2019/08/d...-part-psa.html

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    Re: DongFeng study to sell its stake of Peugeot-Citroen.

    Ouch! That is some really bad performance in China. I wonder why they've had such a steep decline? Styling perhaps?

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    Re: DongFeng study to sell its stake of Peugeot-Citroen.

    Quote Originally Posted by BlackGTP View Post
    Ouch! That is some really bad performance in China. I wonder why they've had such a steep decline? Styling perhaps?
    Partially styling but also the economic situation in China currently is less rosy than before and there been from what I read on the French article from LeBlogAuto; some tensions between DongFeng and Peugeot to add as the cerise on the sundae.
    Last edited by Stéphane Dumas; 08-08-2019 at 05:00 PM.

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    Re: DongFeng study to sell its stake of Peugeot-Citroen.

    Wow, I guess the tariffs are working. This is the first time in many years that I've heard of Chinese firms actually contracting.

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    Re: DongFeng study to sell its stake of Peugeot-Citroen.

    Quote Originally Posted by DequindreToo View Post
    Wow, I guess the tariffs are working. This is the first time in many years that I've heard of Chinese firms actually contracting.
    It's not just the tariffs - China's economy has been expanding too fast to be sustainable so it's good for the Chinese to slow their economy down for a while - the tariffs have helped them, not hindered them!

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    Re: DongFeng study to sell its stake of Peugeot-Citroen.

    Quote Originally Posted by Ruperts Trooper View Post
    It's not just the tariffs - China's economy has been expanding too fast to be sustainable so it's good for the Chinese to slow their economy down for a while - the tariffs have helped them, not hindered them!
    Now that is real spin

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    Re: DongFeng study to sell its stake of Peugeot-Citroen.

    Quote Originally Posted by mbukukanyau View Post
    Now that is real spin
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    Re: DongFeng study to sell its stake of Peugeot-Citroen.

    Quote Originally Posted by DequindreToo View Post
    Wow, I guess the tariffs are working. This is the first time in many years that I've heard of Chinese firms actually contracting.
    There are no tariffs between China and the EU. Growth in China has gone down but it is still growth at this stage - as Rupert suggests it is best for China to plan for low growth or even zero growth. People are being cautious.

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    Re: DongFeng study to sell its stake of Peugeot-Citroen.

    Quote Originally Posted by Ruperts Trooper View Post
    It's not just the tariffs - China's economy has been expanding too fast to be sustainable so it's good for the Chinese to slow their economy down for a while - the tariffs have helped them, not hindered them!
    That's like saying to the guy in the 1993 Ford Explorer, it was good that your tire blew-out; "slowed you down before you rolled-over!"



    Quote Originally Posted by chinamonty View Post
    There are no tariffs between China and the EU. Growth in China has gone down but it is still growth at this stage - as Rupert suggests it is best for China to plan for low growth or even zero growth. People are being cautious.
    Who said there was?
    Last edited by Ed753; 09-02-2019 at 08:50 AM.
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