Peugeot denies joint project with Mitsubishi

25th November 2004, Comments 0 comments

PARIS, Nov 25 (AFP) - The French automaker PSA Peugeot Citroen quashed Thursday a Japanese press report that said it was in talks with troubled Mitsubishi Motors over a possible tie-up.

PARIS, Nov 25 (AFP) - The French automaker PSA Peugeot Citroen quashed Thursday a Japanese press report that said it was in talks with troubled Mitsubishi Motors over a possible tie-up.

"After the publication today of an article in the Japanese newspaper Nihon Keizai Shimbun, the PSA Peugeot Citroen group wants to clarify that the quotes attributed to the group's president do not reflect the terms actually issued during the interview," Peugeot said in a statement.

A company spokesman said there had been "translation problems between the two languages".

The statement stressed that Peugeot has "no alliance plans" and "no active cooperation project" with Mitsubishi, which was has been hit by sagging sales since defect cover-ups came to light.

In the interview with Peugeot chairman Jean-Martin Folz, Nihon Keizai quoted him as saying that the French automaker was considering a production tie-up with Mitsubishi.

A Mitsubishi spokesman was also quoted as saying the company was negotiating a possible business link with Peugeot.

But in the French group's statement, it said: "There is no alliance project with Mitsubishi.

"The group is pursuing its policy of internal growth and has always clearly excluded the possibility of capital-based tie-ups with other automakers."

Peugeot nonetheless added that it did develop "technical cooperation with different industrial partners" and that "within this framework, contacts are regularly held with several automobile constructors to discuss the exchange of components" such as motors and transmissions.

The Japanese report had quoted Folz as saying Peugeot might expand its product line-up by buying cars from Mitsubishi on an original equipment manufacturer (OEM) basis.

Under such deals, one company produces goods to be marketed under another company's brand.

© AFP

Subject: French News

0 Comments To This Article