Further details have emerged concerning PSA Peugeot Citroen’s joint venture with Changan Automobile Group in China.
In a ceremony in Paris today (9 July) Changan’s main shareholder, China South Industries Group Corporation president Xu Bin and PSA chairman Philippe Varin, formally inked the deal that will see both parties develop a range of light commercial vehicles and passenger cars.
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Specifically, the EUR935m (US$1.2bn) investment will see Citroen launch its DS line in China as well as introduce an as-yet confidential new brand.
Initial production is estimated at 200,000 vehicles and engines at the Shenzhen plant , while an R&D centre will concentrate on models powered by new energy sources.
The contract also allows for the joint venture to market at a later date, further vehicles under the partners’ other brands, Peugeot and Changan.
The JV will operate two production lines, through the renovation of an existing line and the building of a new one.
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By GlobalDataEach will produce a specific range of vehicles with the first model scheduled for launch in the second-half of 2012.
The joint venture remains subject to final approval by the relevant authorities.
Peugeot has a separate joint venture with Dongfeng Motor Corporation and its two factories in Wuhan, the capital of central China’s Hubei province, has a production capacity of 450,000 vehicles.
