Peugeot SA said its long-term goal is to raise its stake in the DCAC Chinese car joint venture with Dong Feng Motors to 50 percent from the 27 percent it currently holds.
Peugeot will increase its stake, currently held through Citroen Automobiles, to 32 percent by year-end by means of an 88.2 million cash injection announced in November.
The 50 percent stake may take one or two years to reach, a spokesman said.
Peugeot also said it will create two commercial joint ventures by the end of the year, in each of which Dong Feng will hold 50 percent, with Citroen Automobiles taking 40 percent of one and Peugeot Automobiles taking 40 percent of the other.
DCAC's current shareholders include Dong Feng Motors with 31 percent, Chinese banks with 39 percent and French banks with 3.1 percent.
(China Daily February 26, 2002)
