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Peugeot signs rescue deal with China's Dongfeng Motors

20 February 2014 Last updated at 00:36 GMT

Struggling French carmaker PSA Peugeot Citroen has sealed a long-awaited rescue deal that will see its founding family cede control of the company.

China's Dongfeng Motors and the French government will each invest about 800m euros (£660m) in return for 14% stakes.

Another 1.4bn euros will be raised from existing investors in Peugeot.

The deal is still subject to a shareholder vote but will provide much-needed cash to keep Peugeot afloat after government guarantees expire.

Nigel Cassidy reports.