PSA Peugeot-Citroën and Dongfeng Motor Group yesterday (26 March, 2014) finalised their agreement outlined last month which gives each partner equal 14% shareholdings and a EUR3bn capital boost for PSA.
The ceremony was attended by China’s president Xi Jinping and François Hollande, president of France.
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The companies said in a statement the finalisation of the agreement opened a new phase in the cooperation between Dongfeng and PSA which dates back more than 20 years.
One of the key objectives will be to increase output at DPCA, the Wuhan-based joint venture created in China by Dongfeng and PSA, with the objective of producing and selling 1.5m vehicles a year in 2020.
They will also create a joint R&D centre in China to develop products and technologies for Asian markets including China and create a new joint venture to drive the sales of Peugeot, Citroën and Feng Shen (the brand under which DPCA vehicles are sold) vehicles in South-east Asia and possibly in other emerging markets.
