PSA Peugeot Citroen and Dongfeng Motor Group have announced a strengthening of their partnership to cover 12 vehicle launches and a new plant during the next five years.
The Dongfeng Peugeot Citroën Automobiles (DPCA) joint venture includes key areas such as decision making and a reinforced product plan that calls for the launch of at least one new model per year.
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In 2011, with the rollout of the 508, Peugeot will offer a line-up of large family cars in China, a segment that accounts for 20% of the local market.
The product portfolio will also be renewed and strengthened in the small family car segment – nearly 50% of the market – with new models.
DPCA will unveil an offering in the fast-growing SUV segment, which accounts for 9% of the market, a 50% year-on-year increase.
The DPCA engine portfolio will be renewed during the next five years, with the launch of six new engines delivering between 60 kW and 150 kW of power. At the same time, DPCA has committed to develop hybrid vehicles by launching Stop & Start brands in 2011, to be followed by a full hybrid line-up.
To support DPCA’s growth in sales – which doubled between 2008 and 2010 – PSA Peugeot Citroën and DFM will provide the joint venture with a third automobile production plant.
With an initial capacity of 150,000 vehicles, the facility will be located in Wuhan to produce midrange and lower midrange vehicles alongside the Wuhan 1 plant, which is near full capacity.
Scheduled to come on stream in 2013, the plant is intended to increase DPCA’s total output from 450,000 vehicles a year today to 750,000 in 2015.
DPCA is continuing to develop the Dongfeng Peugeot and Dongfeng Citroën sales networks. By 2012, each brand will have dealerships in China’s 300 largest cities backed by an additional network of several hundred agents.
As part of its Asian development strategy, PSA is also studying the possibility of exporting part of DPCA’s production – assembled vehicles and CKD units – to other countries in the region.
The JV estimates these initiatives will enable DPCA to achieve its goal of a 5% share of the Chinese market by 2015.
