Changan Automobile and Groupe PSA have signed an 'in-depth strategic cooperation agreement to further deepen their cooperation started 6 years ago to establish DS premium brand in China'.

Boost DS brand in China and Asia Pacific
CAPSA - the JV - will 'benefit from the DS ambitious product planning' which will consist in launching one new DS product to the Chinese market each year from 2018 onwards. In addition, state of the art technologies will be available for DS product range including PHEV and a first BEV, expected to be launched in 2019.

Groupe PSA will set-up in Shenzhen its DS brand Headquarters for China, Asia Pacific, in order to develop synergies on a daily basis with CAPSA in the management of operations in China and to develop exports in the region.

Strengthen CAPSA operations and explore further cooperation - more SUVs

Both partners have decided to enhance global production at Shenzhen plant to raise the utilisation rate beyond DS line-up, and will execute the alignment between Presidents to have 'on the short term more SUV and Sedan vehicles produced in Shenzhen plant'.

The agreement will also enable both parent companies to strengthen cooperation on joint development of vehicle platform, new energy vehicles, traditional powertrains, intelligent connectivity, overseas operations. Both partners will execute the decision concerning LCV cooperation, with a "pick-up" in the short term.

Shared investment between CAPSA shareholders

This ambitious development plan of CAPSA will be supported by a strong equally shared investment in equity of both Changan and Groupe PSA amounting to CNY3.6bn (EUR500m (US$562m) over 2017.

"This agreement will give a new impetus to the DS brand in China and in Asia pacific and is a clear demonstration of the willingness to strengthen cooperation between the two companies in a constructive spirit" said Denis Martin, EVP China and ASEAN region of Groupe PSA. Wang Kun, the vice president of Changan Automobile commented: "ChangAn Automobile will work together with Groupe PSA to strengthen the resource investment to CAPSA, unswervingly develop DS as a premium brand, speed up the product launch and set the position of CAPSA as the centre of DS in Asia Pacific."