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PSA and Renault brake up relations after 40 years of partnership in engine and tramsmision production

PSA/Peugeot-Citroen and Renault will end a partnership on engines and transmissions that is their last production alliance in France.

PSA and Renault brake up relations after 40 years of partnership in engine and tramsmision production

PSA will buy back the 50 percent stake Renault currently holds in its Douvrin engine plant in northern France, while Renault will buy back the 20 percent stake PSA holds in its nearby Ruitz site, which makes transmissions.


Both automakers would then fully own each site, respectively.



The deal is due to be officially unveiled on Tuesday. Financial terms were not disclosed, and both companies said the move would not have an impact on the roughly 3,000 jobs at the Douvrin site nor on the 600 at Ruitz.But it marks the end of a partnership dating back to 1969 and is a reminder of how France's leading carmakers have drifted away in recent decades.


Renault has since partnered with Nissan Motor while PSA has teamed up with General Motors Co. and is now mulling a tie-up with China's Dongfeng.





Author: AL
Source: Autolatest

Tags:
broken alliance renault psa, old factory sold renault psa, no more partnership renault psa