The future of Peugeot, a family business? Tricefalia?

Peugeot has accepted as members to the French government and DongFeng Motors

The French group PSA (owner of the Peugeot and Citroën brands) has accepted entry into the capital of the French state and the Chinese manufacturer DongFeng Motors.

The PSA group has already achieved its sales outside Europe involving 40% of the three million units sold in 2012, and its second largest market becomes China.

It is intended that the result of this partnership come to increase sales in China to reach double units.

PSA will recover liquidity, something that needs to launch new models.

Besides PSA will be able to reduce costs by sharing expenses, lines of development and DongFeng platforms. In Paris are accustomed to strategic alliances and is one more, but perhaps the most important.

Change in ownership 

The French daily Les Echos was the first to have a story that has been around the automotive world. The company would let its capital to Chinese automobile manufacturer DongFeng and to preserve the "Frenchness" of the French state Peugeot come with a similar share. 

The Peugeot family of the founder had been gradually decreasing their participation in it, staying at about 25%. With this public input and Chinese capital will be diluted to 15%, most likely losing control of the manufacturer.

Furthermore DongFeng Motors puts one foot in Europe and provides the liquidity needed PSA. DongFeng is one of the four major Chinese vehicle manufacturers. 

The French state becomes the shareholder of the two French manufacturers. The combination of the French government, the Chinese manufacturer and the owner family and is becoming known in France as the three-headed lion.

Finally to finish it is noteworthy that PSA has two factories in Spain (Madrid and Vigo), so will have to see whether this has (positive or negative) consequences for the future of the same.

Have a good Saturday!

GlobalOrg