Peugeot might be rescued by Chinese firm Dongfeng

After a bunch of Chinese onslaughts of helping car manufacturers like Fisker, we hear that Peugeot's founding family has reportedly approved a 3 billion euro rescue deal from China's Dongfeng and the French government.

Sources say that Peugeot family holding Establissements Peugeot Freres and a subsidiary have both approved the proposals, which will cede part ownership to the Chinese firm. The French company's board will take a decision to approve the deal from the Chinese company and the French state.

The rescue plan will establish Dongfeng, the French government and the Peugeot family as equal stakeholders. It is a known fact that PSA Peugeot Citroen has seen a slump in the sales and though the market has recovered, Peugeot hasn't really picked up on the recovery path.

The company has received seven billion euros in state guarantees but the terms expire next year and Peugeot would want to come out of it with its head held high. We will get the official details soon and will keep you updated about the latest on this.