The Peugeot carmaker has shown a willingness for others to join its bid for acquiring JLR.
In a significant development, the PSA Group stated, it is ready to consider a potential tie-up for acquiring UK-based Jaguar Land Rover (JLR) from India’s Tata Motors.
The PSA Group declined to comment on a report by The Press Association that it is nearing a deal. Tata has also denied the report.
The Press Association has cited multiple sources who have referred an internal “post-sale integration document” describing cost savings at Tata Motors.
“As a matter of policy, we do not comment on media speculation, but we can confirm there is no truth to these rumors,” said TATA Motor’s spokesperson.
“On principle we are open to opportunities that could create long-term value for PSA Group and its shareholders,” said Alain Le Gouguec, the PSA Group’s spokesman.
The PSA Group is setting new profitability records even as it continues to integrate Opel/Vauxhall, which it acquired from General Motors in 2017; it has previously signaled openness to further acquisitions.
The fuel-efficiency of its vehicle technologies is going to be a valuable asset going forward as carmakers battle to meet tougher European emissions targets in order to avoid huge fines.
In contrast, JLR faces one of its toughest challenges to comply with looming EU carbon dioxide emission norms as well as growing uncertaintly and potential disruption to its supply chain from Britain’s protracted departure from the European Union.