Indian M&M To Take-Over Peugeot Scooter Business
MUMBAI, India – According to several Indian and French publications Indian car maker Mahindra & Mahindra (M&M) intends to acquire a majority stake in French PSA Peugeot Citroen’s motorized two-wheeler business.
M&M which is part of the conglomerate Mahindra Group made a serious bid to acquire a majority stake in Peugeot Motocycle. In case it will get the approval of anti-trust authorities M&M holds plans to set-up an: “assembly line in Vietnam for Peugeot Motocycle.”
Not only the PSA Group, Peugeot – Citroen’s automotive business, is facing a serious crisis. The same goes for Peugeot Motorcycle. The company’s early and ambitious e-scooter activities couldn’t change it to the better. Nevertheless, Peugeot is said to keep a 9% market share on the European scooter market and with that holds 5th position in the ranking. Yearly sales are said to be around 79,000 units. Most of them are produced – next to a factory in China – at Peugeot’s scooter factory in Mandeure, in the east of France. A total of 500 people are working there.
If the deal with M&M is once completed 80 people have to accept early retirement on a voluntary basis. What happens with the remaining staff isn’t communicated yet. Fact is that several working sectors will be outsourced. The traditional facility might end up as a dedicated R&D center.
According to the bid noted above M&M will take over a 51% stake in Peugeot’s motorized two-wheeler business. For this the Indians will invest 15 million euro in Peugeot Motorcycle. M&M and Peugeot see the deal as part of a long term strategic partnership.