Mitsubishi Motors has confirmed that it is in talks with French manufacturer PSA Peugeot-Citroën in the hopes of rescuing the troubled Japanese manufacturer.

Mitsubishi Motors has confirmed that it is in talks with French manufacturer PSA Peugeot-Citroën in the hopes of rescuing the troubled Japanese manufacturer.

According to Reuters, the company said it was investigating a possible partnership with the French manufacturer to re-establish 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," a company spokesman said.

However, PSA stated it was in contact with Mitsubishi, but had ruled out a share deal and said it had not agreed on any joint project.

"We are in contact with most international manufacturers as part of our co-operation policy. There are therefore no talks about an equity deal between PSA and other manufacturers," a PSA spokesman told Reuters. "We have contact with Mitsubishi as we do with other global car manufacturers."

The main focus of Mitsubishi's new revival plan will be to provide vehicles to other manufacturers. Recent media reports have stated that Mitsubishi has agreed to provide Peugeot with 40 000 vehicles annually. Details of the plan should be announced by the end of January.

Certain analysts have slated this idea, saying that although Mitsubishi needs partners, supplying one manufacturer with 40 000 units will not do much to bolster the fortunes of a manufacturer producing 1,3 million vehicles a year.

Original article from Car