PSA Peugeot-Citroen has confirmed the company is in talks with a potential overseas partner.

PSA Peugeot-Citroen has confirmed the company is in talks with a potential overseas partner.

The company was coy on details but the confirmation comes hot on the heels of a Chinese report that indicated Dongfeng Motor could buy a 30 percent stake in the troubled automaker for 10 billion yuan ($1.6 / €1.2 billion). This would make them PSA's largest investor as the Peugeot family currently retains a 25.5 percent stake.

When pushed for details a PSA spokesperson told Automotive News, "We have a partnership with Dongfeng and we are looking at how we can expand it, but nothing more has been decided."

While PSA Peugeot-Citroen recently partnered with General Motors, the rumored Dongfeng investment doesn't appear to be an issue as GM Vice Chairman Steve Girsky previously said "We're not PSA's only partner so I don't think it would complicate our situation any more than it would complicate some of their other partners." However, General Motors has the option to terminate the alliance if another group takes control of PSA.

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