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Will Peugeot-Citroen Take a Majority Stake in Mitsubishi?

2010_outlander_f34_mitsubishi_fe_9998_1.jpg

Mitsubishi has been struggling for years now, and a report out of Japan today from the Nikkei news service suggests that Mitsu is in the "final stages" of negotiating a deal with PSA, the alliance of the French automakers Peugeot and Citroen. PSA would take at least a 50-percent stake in Mitsubishi.

2009_i-miev_f34_mitsubishi_.jpg What's in it for these parties? Well, it's thought that Mitsubishi could really use cash and a partner with which to develop new models (the Lancer/Outlander family is its newest model line, remember, and that architecture dates back to Mitsu's defunct alliance with Chrysler).

Meanwhile, Peugeot-Citroen are said to be interested in Mitsubishi's work with electric cars (i.e., the i-MiEV) and SUVs (both companies already rebadge versions of the Outlander).

Although Mitsubishi is downplaying this report, it's expected that an announcement will come soon.

Inside Line News: Mitsubishi and Peugeot Talking Tieup

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