CHINA: Changan Auto sells Peugeot JV stake
Changan Automobile Group is selling its 50% stake in a joint venture with PSA Peugeot Citroen to its listed unit, Chongqing Changan Automobile, sources have said, in a sale worth CNY2bn (US$320m).
An unnamed executive at the Chinese parent company told China Daily the move was aimed at streamlining its business and the group's relationship with PSA remains unchanged.
PSA Peugeot manufactures Citroen DS models through the venture with Changan, which has an annual production capacity of 200,000 vehicles. PSA also has a partnership with Dongfeng Motor Group.
A Peugeot spokeswoman in China told China Daily the shift in ownership would not affect its operation.