Oct 14 - French trade unions say they're open to the prospect of the state taking a stake after reports suggest the loss making car maker is preparing a 3 billion euro capital hike with Chinese partner Dongfeng Motor. Sonia Legg reports
3 billion euros is today's daily digit in Europe - a possible capital increase at PSA Peugeot Citroen. The French government and China's state-owned Dongfeng Motor are reportedly planning to take matching stakes in the troubled car maker. They would both contribute 1.5 billion euros, giving each of them between 20 and 30 percent of the French company. Peugeot was among the worst casualties of a six year slump in European car sales. It lost 5 billion euros last year and has been implementing a series of cost cutting measures. Dongfeng is already a Peugeot partner. The new plan will reportedly be accompanied by an expansion of their joint venture. It will also mean the Peugeot family losing control of the company. And there are no guarantees it will save it. Peugeot saw an 18 percent drop in August registrations. Its European market share for the first eight months of the year was 11 percent - down one percent from last year.