Dongfeng-PSA JV to build third plant in Wuhan

Shanghai July 12 (Gasgoo.com) A reporter learned from Dongfeng Motor Corp that it has reached an agreement with PSA on the construction of a third plant for Dongfeng Peugeot Citroen Automobile Co., Ltd. (DPCA). The plant will introduce more new models and is to be located in Wuhan.

DPCA is PSA's biggest joint venture for sedans in China, the production lines of its two models: Peugeot and Citroen cover the economic, middle and high-end markets.

At present, DPCA has two plants with an annual production capacity of 450,000 units.

In the following years, DPCA will introduce one or two new models to the market every year and extend its production line to the segment of urban SUVs.

At the same time, DPCA has also started new powertrain and new energy projects. In 2015, the powertrain for the existing products will be fully updated.

On July 9, PSA and Changan Automobile Co., Ltd signed a JV contract and decided to build a plant in Shenzhen. PSA notified DPCA that the JV with Changan will not compete directly with DPCA; instead, PSA will try to seek greater market share in the Chinese market through the collaborative development of its two JVs.