Mitsubishi Motors says it is in talks with PSA Peugeot Citroen about a possible alliance, but there were “no concrete details decided at this point”.

Mitsubishi has confirmed reports of negotiations but refused to comment on speculation that Mitsubishi could end up building cars for PSA and perhaps its Japanese rival Nissan.

Mitsubishi Motors (MMC), reeling from financial problems and a scandal over defect cover-ups , said it was studying the possibility of partnerships with the French company and others to revitalise its business as soon as possible.