Dongfeng CEO Says Peugeot Investment Not an Invasion - Report

China's state-owned Dongfeng Motor Co.'s (0489.HK) move to take a stake in French auto maker PSA Peugeot Citroen SA (UG.FR) isn't an invasion, nor a takeover, the chief executive of the Chinese company says in an interview in French daily Le Figaro.

"I want to reassure French investors, employees and French people in general: the Chinese dragon isn't going to eat the French lion," Mr. Zhu Fushou says in the interview, adding it is neither an "invasion," nor a takeover.

Still, Mr. Zhu says Dongfeng will participate in management in order to change the structure of the market.

"Dongfeng will take on more responsibilities and will respond to the cash needs of [Peugeot]," Mr. Zhu says. "We are bringing big support to Peugeot in the context of its current difficulties. Dongfeng is ready to share the risks," he adds.

The deal for Dongfeng and the French state to take a 14% stake each in Peugeot is set to be signed March 26 when Chinese President Xi Jinping visits France.

Newspaper Web site: http://www.lefigaro.fr

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