Peugeot, Mitsubishi in Talks

Mitsubishi Motors Corp. said Tuesday that it was in talks with PSA Peugeot Citroen to form a partnership, but the French firm ruled out a share deal and Japanese analysts doubted the negotiations would quickly boost the troubled Japanese car manufacturer’s business.

Mitsubishi Motors, reeling from financial problems and a scandal over its coverups of defects, said it was studying the possibility of partnerships with the French manufacturer and others to revitalize its business as soon as possible.

“It is true that Mitsubishi Motors is studying the possibility of a business tie-up with PSA Peugeot Citroen,” company spokesman Junji Nishihata said. “[But] there are no concrete details decided at this point.”

Media reports over the weekend said Mitsubishi Motors had reached a basic agreement to provide Peugeot, Europe’s second-biggest carmaker, with some 40,000 vehicles annually.

An executive at Peugeot’s Japanese sales arm, Peugeot Japon, declined to comment. PSA Peugeot Citroen in France said it was in contact with Mitsubishi but had not agreed on any cooperation project.

A company spokesman also said an exchange of stakes was not on the agenda.