PSA Peugeot Citroen’s deal to sell stakes to France and Dongfeng Motor Corp. may end up trading a cash influx for a shareholder structure that threatens to hobble the manufacturer’s decision-making, analysts said.
A year ago, investors loved Great Wall Motor Co.’s cheap SUVs. The stock surged to records, margins fattened beyond those of any automaker and the chairman even talked about outselling Jeep. Then it tried to go upscale.
Chinese automakers are about a decade away from being globally competitive and will have to increase their spending on research and development to close the gap, according to Sanford C. Bernstein & Co.
Wang Jiangwei recalls spending last summer sweating through a month of military drills conducted by Chinese People’s Liberation Army instructors. Wang isn’t a soldier; he’s a researcher at Great Wall Motor Co.