You can now read 5 articles in a month for free on BostonGlobe.com. Read as much as you want anywhere and anytime for just 99¢.

Red Sox Live

5

3

Final

After two centuries, Peugeot family cedes control

Philippe Varin is retiring as CEO of PSA Peugeot Citroën, long a family-controlled company.

PASCAL ROSSIGNOL/REuters

Philippe Varin is retiring as CEO of PSA Peugeot Citroën, long a family-controlled company.

PARIS — The family business that grew into PSA Peugeot Citroen got its start more than 200 years ago, making goods like pepper mills, bicycles, and whale-bone corsets on its way to becoming the largest automaker in France. This week the Peugeot family, one of the country’s wealthiest, agreed to give up control of the company it had been running for eight generations.

As part of a $4.1 billion plan to raise new capital, announced Wednesday, the family will reduce its holding to 14 percent from just over 25 percent. That opens the way for Dongfeng Motor, a big Chinese car company, and the French government to each buy 14 percent stakes.

Continue reading below

The company, which ranks second to Volkswagen in Europe and employs 90,000 people in France, has been losing money and market share along with the sharp downturn in the European auto industry.

After General Motors sold its 7 percent investment in Peugeot last year, the company turned to its Chinese partner and President Francois Hollande’s Socialist government, in the hope that the money would come without too many strings attached.

The investment of public money by Hollande’s government is aimed at preserving the factories and jobs in France.

Loading comments...

Wake up with today's top stories.

Want each day's news headlines delivered fresh to your
inbox every morning? Just connect with us
in one of the following ways:
or
Please enter a valid email
BostonGlobe.com will never post anything without asking.
Privacy Policy
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com