FRANCE: China signs off on new PSA-Changan JV
The creation of Changan PSA Automobile, a joint venture between China Changan Automobile Group and PSA Peugeot Citroën, was approved by China’s National Development and Reform Commission (NDRC) on 12 July, 2011, PSA announced on Monday.
NDRC’s approval signals the operational launch of the joint venture, which has capital of RMB4bn divided equally between the two partners. The total initial investment is RMB8.4bn (EUR935m).
The joint venture will manufacture and distribute passenger and light commercial vehicle ranges in China focusing initially on introducing the Citroën DS line in China, as well as launching a dedicated new brand. The contract, signed in July 2010, also provides for the joint venture to market other vehicles under the partners’ Peugeot and Changan brands.
With operations in Shenzhen, in Guangdong Province, the joint venture will have initial annual production capacity of 200,000 vehicles and engines. It will have two production lines – an existing line that will be renovated and a second yet to be built. Each will produce a specific range of vehicles. The joint venture will also have an R&D centre.