The inking ceremony

The inking ceremony

PSA and Chinese partner Dongfeng have signed new agreements to strengthen their partnership and create a new medium-term plan – dubbed "5A+" - for their joint venture entity Dongfeng Peugeot Citroën Automobile (DPCA).

At the presentation of the new DPCA strategic plan on Wednesday, 11 May, Carlos Tavares and Zhu Yanfeng, the respective chairmen of DPCA's two company shareholders, signed an agreement to design an electric version of the Common Modular Platform (CMP), which they have been developing jointly since April 2015.

This future electric platform (e-CMP) will deliver a "worldwide offering of all-electric, high-performance B and C segment vehicles for the Peugeot, Citroën, DS and Dongfeng brands from 2019".

PSA Group and DFM also signed a framework Human Resources agreement "designed to increase synergies to develop talent internationally".

In practical terms, the agreement will provide for temporary employee exchanges between operational teams in the fields of Research & Development, Marketing, Manufacturing, Finance and Human Resources. Best practices will also be shared in each area of HR to identify potential areas of cooperation, the companies say.

At the ceremony, Carlos Tavares, Chairman of PSA Group's Managing Board, emphasised the effectiveness of the collaboration between the PSA and DFM teams and the importance of building on its synergies through talent sharing. He said: "The future e-CMP platform is a key milestone in our partnership with Dongfeng. It will speed up the worldwide development of both of our groups, while helping us to reach the strict carbon objective set for 2020".

The new "5A+" medium-term strategic plan is designed to make DPCA "an efficient car manufacturer, capable of providing its customers with comprehensive mobility solutions."

PSA said the new plan has three strategic focuses:

  • To significantly increase customer satisfaction with products and services, with the aim of moving into the top 3 ranking in the industry by 2018 and becoming No.1 in 2020.
  • Generate revenue in excess of RMB100 billion by 2020.
  • To ensure profitable, sustainable growth underpinned by productivity gains of 30% by 2020.