Gasgoo.com (Shanghai June 28) - With the annoucement that former Vice President of Shanghai GM Sun Xiaodong has joined Peugeot Citroen, media scrutiny has been put on the company's plans for the Chinese market. In response, the manufacturer has recently put out an annoucement saying that it is planning to open a Chinese branch responsible for expanding its regional auto part and finance services.
The new company will only have authority over direct sales of Peugeot vehicles, and will not be able to embark on new joint ventures with local manufacturers. Sources within the company have stressed the financial risks PSA needs to undertake to establish the new company, saying that the amount needed to establish a branch company is much higher than it used to be.
Meanwhile, Mr. Sun (pictured) has returned back to China, after having completed his training in Europe. He will reportedly officially take over his predecessor's responsibilities at the end of the year.
