Leaked information suggests a sale of struggling Jaguar Land Rover to French automotive group PSA could be imminent.
It is understood a “post-sale integration document”, which outlines the benefits of the two companies joining forces, is already in circulation and the firms are exploring the detail of cost saving benefits after a tie-up.
A spokesman for PSA – owner of Peugeot, Citroen, DS and Vauxhall – told the Press Association that the firm was in “no hurry” to make acquisitions and could “stand alone”.
However, despite denying the rumour, spokesman Pierre-Olivier Salmon added: “We are generating the cashflow necessary to pay for our future. If an opportunity comes, like Opel (Vauxhall), we will consider it.”
PSA chairman Carlos Tavares has made no secret of his desire to either merge or acquire struggling UK-based luxury car manufacturer JLR.
During an interview with Autocar India in April, he said he believed it would be good for PSA to have a luxury brand and that the company was “considering all opportunities”.
Both companies have denied the latest rumours, but sources inside JLR have told the Press Association that despite public statements, “things are moving quickly behind closed doors”.
One insider, who has seen the integration paperwork, said: “To have a document like this in circulation at the two firms points to the fact things are very far down the line with either a sale or acquisition.
“Just look at how close the two firms are in the UK – the two head offices in Coventry and Gaydon are just 25 miles apart and both firms make cars in the UK. There are plenty of ways the two companies could save money by working together.”
Automotive industry expert Professor David Bailey of the Birmingham Business School believes the tie-up could be a good fit for both brands.
He said: “PSA said last month it was interested in acquiring JLR but [its owner] Tata publicly ruled out a sale. Tata shareholders’ patience may be wearing thin, though, given recent JLR losses. A partial sale may be an option.