After more than a hundred years in control of one of Europe’s great industrial groups, it was no wonder that the Peugeot family became divided over the deal that would take their flagship business out of their hands.
Robert Peugeot, who runs the family holding company, and Philippe Varin, the carmaker’s chief executive, had agreed that a deal with Chinese carmaker Dongfeng Motor and the French government – announced on Wednesday – was essential.
Not only would the €3bn capital injection put the group on a firmer footing for investing in Europe, where car sales have been at their worst for 20 years, but it would also enable Peugeot to grow its footprint in Asia.
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