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Peugeot Citroen close to Chinese investment deal

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January 20, 2014 05:12 AM EST | AP


PARIS (AP) — Out with General Motors Co., in with China's No. 2 automaker: PSA Peugeot Citroen is moving closer to a partnership with Dongfeng Motor.

Spokeswoman Antonia Krpina at the capital-hungry French automaker said Monday its supervisory board has reached "cohesion" in talks announced last month involving Dongfeng. She declined further comment, saying no deal has been signed yet.

Last month, Detroit giant GM said it had decided to unload its 7 percent stake in the struggling French company, without disclosing a price, while maintaining their alliance.

Many acquisitions and corporate partnerships abroad by Chinese companies aim to improve their competitive edge in their fast-growing home market. A Peugeot tie-up would give Dongfeng access to a well-known brand and advanced technology to help expand its share of the world's biggest auto market.