Peugeot’s $3 billion loss shows rescue deal is just a start

With the aid of Laurence Frost PARIS (Reuters) – PSA Peugeot Citroen plans to build new vehicles and increase in Asia under a French-backed rescue deal agreed with China's Dongfeng, the carmaker stated on Wednesday, because it posted a $three.2 billion loss that underscores the size of the duty ahead. Dongfeng Motor Workforce and the French state will each pay 800 million euros for 14 % of the carmaker to compare the founding Peugeot household's diminished protecting, Peugeot stated, confirming prior Reuters reports. Peugeot shares jumped as a lot as 9 percent after it unveiled new goals for the partnership with Dongfeng and mentioned it had slashed cash burn ultimate yr, beating an period in-between recovery goal. However Peugeot stated it still made a 2.32 billion euro ($three.2 billion) net loss, and warned it won’t stem the pink ink unless 2016, a yr later than at the beginning promised.