PSA drives into 2nd JV with Changan
By Jin Jing |
May 7, 2010, Friday
|
Print Edition
Print Edition
FRENCH car maker PSA Peugeot Citroen has formed an equally owned joint venture with China's Changan Automotive Group Co to produce eco-friendly light commercial vehicles and passenger sedans, according to the Chinese firm's statement yesterday.
PSA decided to form a second Chinese joint venture with Changan - also the Chinese partner of Ford Motor Corp - to ride on China's growing auto market which is now strategically important for overseas car makers. The French firm already operates plants with China's Dongfeng Motor Group.
Last year, the French car maker sold around 272,000 vehicles in China, a rise of 52 percent. Despite the hefty growth in China, PSA's development domestically has been slow compared with General Motors and Volkswagen. GM's sales jumped 67 percent to top 1.83 million units last year.
"Peugeot Citroen has a wide range of products and teaming up with a second partner means a new opportunity," said Jia Xinguang, an independent auto analyst. "Developing two brands under just one joint venture also doesn't fit its best interests."
Befitting the importance of the Chinese market, PSA aims to more than double its market share in China to 8 percent by 2020 to ride on the fast growth here.
Philippe Varin, CEO of the Paris-based car maker, yesterday said the Peugeot-Dongfeng venture is also planning a third factory.
Earlier media reports said the new venture may use a factory in Shenzhen, owned by Harbin Hafei Automobile Industry Group Co, which Changan acquired last year.
Other major car makers are also expanding in China. VW has announced an extra investment of 1.6 billion euros (US$2.1 billion) in China for two new plants. GM would launch 25 new and upgraded models in China in the next two years.
PSA decided to form a second Chinese joint venture with Changan - also the Chinese partner of Ford Motor Corp - to ride on China's growing auto market which is now strategically important for overseas car makers. The French firm already operates plants with China's Dongfeng Motor Group.
Last year, the French car maker sold around 272,000 vehicles in China, a rise of 52 percent. Despite the hefty growth in China, PSA's development domestically has been slow compared with General Motors and Volkswagen. GM's sales jumped 67 percent to top 1.83 million units last year.
"Peugeot Citroen has a wide range of products and teaming up with a second partner means a new opportunity," said Jia Xinguang, an independent auto analyst. "Developing two brands under just one joint venture also doesn't fit its best interests."
Befitting the importance of the Chinese market, PSA aims to more than double its market share in China to 8 percent by 2020 to ride on the fast growth here.
Philippe Varin, CEO of the Paris-based car maker, yesterday said the Peugeot-Dongfeng venture is also planning a third factory.
Earlier media reports said the new venture may use a factory in Shenzhen, owned by Harbin Hafei Automobile Industry Group Co, which Changan acquired last year.
Other major car makers are also expanding in China. VW has announced an extra investment of 1.6 billion euros (US$2.1 billion) in China for two new plants. GM would launch 25 new and upgraded models in China in the next two years.
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