(Bloomberg) -- Dongfeng Motor Corp. is exploring options for its 2.2 billion-euro ($2.5 billion) stake in Peugeot owner PSA Group including a potential divestment, people with knowledge of the matter said.

The Chinese state-owned automaker held talks in recent weeks with potential advisers about ways to monetize part or all of its 12.2% stake in the French carmaker, according to the people. As part of the strategic review, Dongfeng Motor has discussed possible transactions including a straight sale of PSA shares or issuing exchangeable bonds backed by PSA stock, the people said.

Dongfeng Motor, which has a Chinese joint venture with the French carmaker, plans to coordinate with PSA if it decides to sell down so that it can preserve a good working relationship, they said. Deliberations are at an early stage, and there’s no certainty they will lead to a deal, according to the people.

The Chinese automaker may hold onto part of its stake in PSA to potentially benefit from future industry consolidation, the people said. PSA said in May that it’s open to “any opportunities” to create long-term value amid reports of tie-ups with other automakers. PSA and Fiat Chrysler Automobiles NV had explored sharing car manufacturing investments in Europe, people familiar with the matter said earlier this year.

A representative for Dongfeng Motor said they don’t have any information regarding the plan at the moment. A representative for Peugeot declined to comment.

Dongfeng Motor is one of the French carmaker’s biggest shareholders alongside the French state and the Peugeot family. PSA Group Chief Executive Officer Carlos Tavares said in October the parties’ shareholding pact is stable and that a change isn’t in the works.

In a sign that PSA is struggling to keep its Chinese plants busy, Tavares has said he’d consider making cars for the U.S. market in China. Renting out the facilities is also among ways to tackle the capacity issue, PSA Chief Financial Officer Philippe de Rovira has said.

--With assistance from Dong Lyu and Ania Nussbaum.

To contact Bloomberg News staff for this story: Crystal Tse in Hong Kong at ctse44@bloomberg.net;Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net;Vinicy Chan in Hong Kong at vchan91@bloomberg.net;Tian Ying in Beijing at ytian@bloomberg.net;Ruth David in London at rdavid9@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, ;Young-Sam Cho at ycho2@bloomberg.net, Amy Thomson, Ben Scent

©2019 Bloomberg L.P.