Mitsubishi Motors Corp. and PSA Peugeot Citroen of France are in talks to form a capital and business tieup, sources at the Japanese automaker and industry sources said Saturday.
The two automakers are discussing plans centering on one that would allow MMC to supply cars to Peugeot in North America and elsewhere, and MMC is hoping to wind up the talks before mid-December, when it is scheduled to unveil a review of its restructuring plan, the sources said.
The Nihon Keizai Shimbun reported in its Saturday evening edition that the two automakers are discussing mutually supplying passenger cars and engines in markets such as the United States and Europe, as well as Peugeot buying a stake in MMC.
MMC is still reeling from sluggish sales stemming from bad publicity over its handling of defective vehicles, even after capital injections from Mitsubishi group companies.