PSA Peugeot Citroen and Dongfeng have announced a project to jointly develop a global platform for the manufacture of B- and C-segment vehicles under the Peugeot, Citroën, DS and Dongfeng brands. The two OEMs also said that they will create a joint R&D centre based in Shanghai that will be dedicated to developing products and technologies for fast-growing Asian markets.

The new “Common Modular Platform” (CMP) will become PSA Peugeot Citroën and DFG’s new generation platform for B- and C-segments and involves a capital expenditure of EUR200m, of which 60% will be committed by PSA and 40% by Dongfeng Motor Group (DFG). A liaison team of DFG engineers will be located in Vélizy, within the main project team.

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The new platform will enable PSA Peugeot Citroën and DFG to manufacture vehicles in their respective growth regions. PSA said that in China and the ASEAN countries, PSA Peugeot Citroën will benefit in particular from DFG’s supplier base expertise, which will make it “possible to meet ambitious cost targets in highly competitive segments”.

PSA also claimed that the Common Modular Platform will provide effective solutions in terms of modularity, versatility, equipment and carbon reduction.

The DPCA joint venture aims to sell 800,000 vehicles this year in China up from over 700,000 in 2014. 

Carlos Tavares, Chairman of the PSA Managing Board and CEO, said: “The first partnership year was very eventful, with DFG’s acquisition of an interest in PSA, the creation of new sales joint ventures for China and ASEAN countries, and DPCA’s launch of the new-generation Fengshen vehicles.

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“With the Common Modular Platform on stream from 2019, and with the joint R&D centre, the two Groups will put strategic resources in place to accelerate their international expansion, particularly in China and the ASEAN countries, where the goal is to sell 1.5 million vehicles by 2020.”