Mitsubishi denies link-up with PSA Peugeot

29th October 2004, Comments 0 comments

TOKYO, Oct 29 (AFP) - Scandal-hit Japanese carmaker Mitsubishi Motors on Friday denied reports that it was negotiating a business link with PSA Peugeot Citroen Group of France.

TOKYO, Oct 29 (AFP) - Scandal-hit Japanese carmaker Mitsubishi Motors on Friday denied reports that it was negotiating a business link with PSA Peugeot Citroen Group of France.

The Nihon Keizai Shimbun and other dailies said the struggling automaker was in talks with PSA Peugeot Citroen for a tie-up that would include an original equipment manufacturer (OEM) agreement for minivans and joint production in North America.

"Mitsubishi Motors is continually studying the possibility of partnerships in individual businesses to strengthen our efforts to achieve business realisation as soon as possible," the company said in a statement.

"All stories concerning our relationship with PSA Peugeot Citroen are based on speculation," it said.

Mitsubishi, the fourth-largest carmaker in Japan, and its truck-making affiliate are struggling to recover lost business after admitting to defect cover-ups that forced it to conduct massive vehicle recalls this year.

On Thursday media reports said Mitsubishi was considering forming in April next year a 50-50 joint venture with Nissan Motor, the second-largest carmaker in Japan, to develop mini vehicles.

Nissan denied the reports as "pure speculation."

The Nihon Keizai said that by securing several OEM deals, Mitsubishi hopes to maintain production levels both at home and abroad.

A Peugeot deal would cover the production of vehicles similar to the Grandis minivan for sale under the French group's brand in the European market, the daily said. The minivans, and other vehicles, would be jointly manufactured at an MMC plant in the US state of Illinois, it said.

© AFP

Subject: French News

0 Comments To This Article