mitsubishi in peugeot link talks trouble-hit mitsubishi motors is in talks with french carmaker psa peugeot citroen about a possible alliance.  on tuesday mitsubishi  the only major japanese car firm in the red  confirmed earlier reports of negotiations. but a spokesman refused to comment on speculation that mitsubishi could end up building cars for psa and perhaps its japanese rival nissan. mitsubishi has been hit by a recall scandal and the withdrawal of support from shareholder daimlerchrysler. the us-german firm  once a majority shareholder  decided last april to stop providing financial backing. mitsubishi s sales have slid 41% in the past year  catalysed by the revelation that the company had systematically been hiding records of faults and then secretly repairing vehicles. mitsubishi is due to unveil a recovery plan later in january. analysts said that alliances with other carmakers would be a necessary part of whatever it came up with  not least because its own slow sales have left its manufacturing capacity under-used.