After months of rumors, PSA Peugeot-Citroen has officially confirmed a tie-up with China's Dongfeng Motor Group.

After months of rumors, PSA Peugeot-Citroen has officially confirmed a tie-up with China's Dongfeng Motor Group.

The details are a little technical but Dongfeng and the French government will investment €800 million ($1 billion) into the troubled automaker. In return, both will receive a 14% stake in PSA Peugeot-Citroen.

The deal also calls for the creation of a joint research and development center as well as the licensing of technologies developed by PSA Peugeot Citroën. The agreement also calls for the creation of a new joint venture to "drive the sales of PSA Peugeot Citroën and Dongfeng vehicles in the rest of Asia and possibly in other emerging markets."

 

PSA Peugeot-Citroen officially teams up with Dongfeng