According to the British auto magazine autocar on May 13th, the French government and the Chinese automaker Dongfeng Motor will inject huge amounts of capital into the loss-making French car company Citroen Citroen (PSA), officially opening the PSA Peugeot Citroen brand reconstruction plan.

In 2014, the French government and Dongfeng invested 2.46 billion euros in PSA, and there are still 454 million euros not paid. In addition, if the newly issued warrants can be purchased by shareholders, the company will also receive 657 million euros in 2015, will receive a total of 3.1 billion euros in capital injection, the French government and Dongfeng will obtain PSA's 14% stake, to make up for Peugeot family shares held by the company.

It is reported that this fund will be used first to develop new products and invest in the EMP1 compact platform and new models.

Prior to this re-raising, PSA Chairman Carlos Tavare announced a four-year restructuring and reconstruction plan called "BackintheRace." The boldest move of the plan is to reduce the PSA blending production line from the current 45 to 26. These new products are directed at the "most profitable" products in the global market.

PSA hopes to triple Dongfeng’s production of cars in China and reverse its market position in South America and Russia, hoping to achieve profitability in these areas in the next three years.

In the short term, Tavares requires that PSA's annual balance of payments not exceed 2 million vehicles. PSA also revealed that the company had produced 2.3 million automobiles in 2013, and the balance of payments was 2.6 million. Reducing the balance of payments requires a reduction in fixed costs of 205 million euros, which means that the average manufacturing cost per vehicle is reduced by 4%, and the average transaction price increases by 2% at the current level. PSA hopes to achieve a 2% operating margin in four years and a 5% profit in the next 10 years.

The biggest challenge facing Tavares is to change the corporate culture of PSA. He expressed the hope that at PSA he will see a "competitive way of thinking, that is, a corporate culture that focuses more on execution, responsibility, and profitability."