Struggling Mitsubishi 'in talks' with Peugeot

25th November 2004, Comments 0 comments

TOKYO, Nov 25 (AFP) - Struggling Japanese auto-maker Mitsubishi Motors said Thursday it is in talks with France's PSA Peugeot Citroen Group over a possible tie-up.

TOKYO, Nov 25 (AFP) - Struggling Japanese auto-maker Mitsubishi Motors said Thursday it is in talks with France's PSA Peugeot Citroen Group over a possible tie-up.

"We are considering the possibility of a tie-up but we are still at an early stage of talks and therefore it's hard to say in what areas we can cooperate," a spokesman for Japan's fourth-largest auto-maker said.

Mitsubishi Motors Corp., hit by sagging sales after defect cover-ups came to light, declined to disclose further details of a possible business link with the French group in a revised revival plan due December 17.

The Nihon Keizai Shimbun newspaper reported Thursday that PSA Peugeot Citroen Group chairman Jean-Martin Folz is considering a production tie-up with Mitsubishi Motors.

In an interview with the business daily in Paris, Folz emphasized that Peugeot was not considering investing in Mitsubishi.

He did confirm, however, that Peugeot was discussing a production link with Mitsubishi, with an eye towards reducing production and development costs for specific models and platforms, the Nihon Keizai said.

Folz said Peugeot might expand its product line-up by buying cars from Mitsubishi on an original equipment manufacturer (OEM) basis.

© AFP

Subject: French News

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