Chinese car maker Dongfeng Motor Group and the French Government have bailed out the struggling PSA/Peugeot-Citroen brands. 

PSA/Peugeot-Citroen today unveiled a €3 billion capital tie-up with China's Dongfeng Motor Group and said the cash injection would buy time for a recovery after the company posted a further loss for 2013.

Dongfeng and the French state will each pay €800 million for 14 percent of the carmaker to match the founding Peugeot family's reduced holding, PSA said in a statement. PSA said its full-year net loss narrowed to €2.32 billion from €5.01 billion in 2012, when the bottom line was hit by asset writedowns. Sales fell 2.4 percent to €54.09 billion.

Dongfeng said the Chinese company, the French government and the Peugeot family will own equal stakes in Peugeot and each is expected to gain equal voting rights.