Shanghai, July 8 (Gasgoo.com) PSA Peugeot-Citroen and China's Changan Auto are set to sign a final deal tomorrow for a vehicle-making joint venture based in southern China as the French carmaker's second Chinese partnership, media reported today, citing a PSA executive
PSA, Europe's second-largest carmaker after Germany's Volkswagen AG, already has a joint venture in China with Dongfeng Motor Corp for producing its Citroen and Peugeot cars. The new move will help the French automaker tap more into the fast-growing Chinese auto market, now the world's largest.
In May, PSA and Changan signed a letter of intent for creating a 50-50 venture to produce eco-friendly passenger cars and light-commercial vehicles. A final agreement will be signed on July 9, Jean-Marc Gales, director for Peugeot brands, said yesterday. The new JV may be located in southern Chinese city of Shenzhen.
Peugeot-Citroen's China sales increased 49% in the first half of the year to more than 176,000 vehicles, lifting market share to 3.3% from 3.2% of a year earlier. The Changan JV may help the French carmaker hit its goal of selling 2 million vehicles annually in China by 2020.
PSA expects its China sales to reach 400,000 cars this year, nearing the 450,000-unit capacity of the current two plants of its Dongfeng venture, which is planning a third plant.
