• Jan 19th 2010 at 8:33AM
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Peugeot 4007, a rebadged Mitsubishi Outlander – Click above for high-res image gallery

'Tis the season to form mergers, and the latest could involve a large stock swap between Mitsubishi and PSA Peugeot-Citroen. The two automakers have longstanding ties that include such projects as the Mitsubishi iMiEV electric car (which Peugeot has shown as the iOn) and the Mitsubishi Outlander SUV (which Peugeot sells as the 4007 and Citroen as the C-Crosser). But now the rapprochement could be entering a new stage.

In a potential tie-in that could mirror rival French automaker Renault's alliance with Japanese automaker Nissan, reports suggest that PSA and Mitsu are on the verge of a stock swap. Insiders aren't sure what sort of arrangement could be brokered, but speculate that PSA could take effective control with a large minority stake in Mitsubishi in exchange for either stock in PSA, cash in hand or a combination of both.

The strengthened partnership would stand to help PSA, Europe's second largest automaker, compete not only with the Renault-Nissan Alliance, but also with Volkswagen, Europe's largest automaker which is teaming up with Suzuki for presence in Asian markets. Industry analysts, however, note that with PSA already burdened with growing debts and given Mitsubishi's relatively small production and market share, the move could be ill-advised for the French auto group. On speculation of the potential partnership, PSA stock reportedly fell 3.6 percent, while Mitsubishi's rose 7.5 percent – the largest respective drop and gain for each automaker in months. Thanks for the tip, Vladimir!

[Source: Bloomberg]

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    • 1 Second Ago
      • 5 Years Ago
      Just when you thought their cars can't get any uglier
      • 5 Years Ago
      Mitsu could have a couple of hits on their hand if they could bring the newer Citroen Picasso MPVs to the US (albeit without the Lancer face grafted on).
      • 5 Years Ago
      good, now give me a citroen c6 with green alien goo balls for suspension and i'll be happy

      • 5 Years Ago
      Hmmm, this is actually pretty cool and interesting. Peugeot/Citroen and Mitsubishi have a rather extensive racing heritage, Peugeot/Citroen/Mitsu have won numerous WRC/Dakar and other various racing events so there definitely is a lot of passion for motorsports involved. Also, the Citroen/Peugeot designs, to me at least, are a lot more intriguing/better looking than Fiat or Volkswagen so Mitsu can take some of PSA design input and make some good looking cars although Mitsus problem IN USA is not really design but brand perception and lack of marketing, Outlander/Lancer products are just fine from design point of view. And PSA can sell rebaged cars as Mitsu in USA/Asian markets without spending a lot more money on reintroducing the actual brands. Plus Mitsu desperately needs a new Galant, a rebaged Citroen C5 would do a nice trick, plus the new C3 looks very cool. PSA woudl also have access to Mitsus electric vehicle efforts in which they are one of the front runners of technology.

      It all makes sense, plus Mitsu has been collaborating with PSA for few years now so they know each other pretty well.
      • 5 Years Ago
      This is a bad deal for Peugeot if it involves sending cash to Mitsubishi. If they want economies of scale they can agree on joint-ventures to manufacture engines, transmissions and jointly design new chassis and platforms to spread the R&D costs.
      • 5 Years Ago
      Seems like a good deal for PSA. It also gets them into the US market, without having to reintroduce either of their brands. On a down note it seems we will eventually be left with 5-6 automakers worldwide making a lot of vanilla product. Thankfully there will be older cars around for us individualists.