The French carmaker is said to be eyeing a 30% stake in the Japanese car manufacturer.
The move would extend the existing partnership between the Japanese and French carmakers. The two already collaborate on 4×4’s and developing electric vehicles and have a joint venture in Russia.
It would also give Peugeot a reach into Asian and US markets where Mitsubishi has manufacturing sites, as Peugeot’s presence is predominantly in Europe and South America.
Peugeot says it has “started discussions with Mitsubishi concerning the possibility of extending their relationship, which could lead to a strategic partnership”.
Volkswagen, Europe’s biggest car manufacturer, is expected to complete a deal to buy a 49.9% stake in Porsche next week, and is said to be in talks with Suzuki.