PSA Peugeot Case Study

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Background PSA Peugeot, a French brand dated back 1890s, is one of the big six automakers in Europe producing automobiles, commercial and utility vehicles. ("PSA Peugeot Citroen S.A.", n.d.). Its core competency lies in its long history of brand and innovations. Dongfeng Motor Co., Ltd. (DFL) is the largest joint-venture enterprise in China’s auto sector, producing passenger and commercial vehicles as well as parts and components (Dongfeng Motor Co., Ltd., n.d.). Its competencies are independent research and innovation of self-owned brand engine technology and high quality products (Jun, 2010). Peugeot suffered greatly from the Europe 's six-year market slump (Shen & Takada, 2014), and that is the reason for Peugeot-Dongfeng deal. Dongfeng and the French government each needed to invest 800 million euros for 14 percent stake. It is also subject to shareholder vote to bring in much-needed cash after state guarantees expire. The stake and voting rights of Peugeot family will be diluted to parity with the government and Dongfeng (Shen & Takada, 2014). The future objectives of this partnership are to co-develop the cars and jointly develop the Southeast Asian market (PSA Peugeot Citroën, 2014). 1. Introduction Business environment is divided into internal and external. External environment can affect the business but is beyond the control of business. It includes macroenvironmental factors and microenironmental factors (Jain et al., 2009). This tie- up can be analyzed by

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