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Peugeot family cedes control in rescue deal with China's Dongfeng

PSA Peugeot-Citroën may have been saved from the brink of collapse. It has finally completed a deal where Chinese automaker Dongfeng and the French government are each investing about 800-million euros ($1.1 billion USD) to take 14 percent stakes in the automaker, according to the BBC. The deal dilutes the Peugeot family's stake from 25.4 percent to 14 percent. In addition to that, it is raising another 1.4 billion euros ($1.9 billion) from existing PSA investors. The deal still must be approved by shareholders, but is expected to pass.
The deal's announcement comes at the same time that PSA has announced its 2013 financial results. It posted a 2.32-billion euro ($3.2 billion) loss last year, which can be considered a substantial improvement compared to the 5-billion euro ($6.9 billion) loss in 2012. Sales were down 2.4 percent last year.
The Dongfeng deal has been rumored since last year, and the two companies are already linked, as Dongfeng runs a PSA joint-venture factory in China. The French government is promising to use its stake to protect Peugeot workers in France when it becomes a shareholder.

Citro"en C3 is updated for hatchback battling in 2013 [w/video]

As promised, Citroën has brought along its new C3 to Geneva this year, with high hopes that the hatchback will be a strong competitor versus the hegemony of Golf in the European compact market. (And a worsening market, at that.)
The C3's gigantic windshield is still in place for the 2013 model year, though revisions to the grille, LED running lamps, taillights and front/rear fascias can be seen. Engine choices now include two three-cylinder gasoline engines, in 68- and 82-horsepower flavors, as well as a 120-hp, 1.6-liter four-cylinder. A very Gallic selection of four diesel motors is also on tap, with outputs ranging from 70 to 115 horsepower. UK buyers will see the new C3 in dealerships starting this summer.
Citroën's full press release for the updated C3 can be found below, and our live images from Geneva are in the attached gallery. You'll also find the official C3 debut video, just below.

PSA shares rise following FCA's breakup with Renault

Shares in Groupe PSA, parent company of automakers Peugeot, Citroen and the DS brand, rose on Thursday as analysts considered the possibility that Fiat Chrysler could turn back to PSA after withdrawing its $35 billion merger offer for Renault. "Both parties have acknowledged the need for scale or [mergers and acquisitions] and may pursue other opportunities. If Nissan was an obstacle (to an FCA-Renault deal) PSA-FCA discussions could resume," wrote brokerage Jefferies. Back in March at the Geneva Motor Show, rumors started swirling that PSA was interested in a potential merger with FCA. Mike Manley, who took over at the helm of Fiat Chrysler following the death of Sergio Marchionne, had indicated a willingness to look into potential partnership options. Of course, that was all before FCA proposed a merger with Renault — with that deal now off the table, attention naturally turns back to PSA, which is also based in France. "We expect both shares to react negatively but see FCA having wider strategic options and Renault shares more downside risk near-term," said Jefferies. According to Reuters, PSA shares were up 1.5% at the time this was published, making it the top-performing stock on France's benchmark CAC-40 Index. Renault saw its shares slump 7%. Shares for FCA fell 3% in early trading on the Milan Stock Exchange. Considering that FCA said in its statement confirming the withdraw of its merger offer with Renault that "political conditions in France do not currently exist for such a combination to proceed successfully," we have to wonder how keen the company is to begin negotiations with another French automaker like PSA. Those thoughts were similarly voiced by Bernstein Research analyst Max Warburton, who said (via Forbes), "Expect PSA to rise on unrealistic hopes it may be FCA's next date." Earnings/Financials Chrysler Fiat Mitsubishi Nissan Citroen Peugeot Renault FCA renault-nissan