Changan-PSA venture bases in Shenzhen

Shanghai August 16 (Gasgoo.com) China's No.4 automaker Changan Auto Group officially announced that it has signed a production agreement with PSA and has decided to choose Shenzhen as the production base for the JV.

The two sides agreed that the production base for the new JV is to be based in the north part of Shenzhen with an annual production capacity of 200,000 vehicles and 200,000 units of engines. At present, it mainly focuses on introduction of the Citroen DS series . According to Changan Group's plan, with the DS Series being put into production, the Group's total annual output value will be reaching over 50 billion yuan ($7.45 billion)

It is reported that after it signed the JV agreement with PSA in Paris on 9th July, Changan spent one month in straightening out the production project. Changan's product system will be extended to high-end market to form a well rounded Auto Group that covers high-, mid- and low-end brands.

 An insider revealed to the reporter that the JV with PSA is the seventh production base after Changan Group signed a strategic cooperation agreement with local governments in Heilongjiang, Jingdezhen, Nanjing, Hebei, Hefei, Beijing and so forth. This JV will help the Chinese automaker extend its business in Northeast, North China, Southwest, East China, South China and other regions across the country.

An industry expert said that in addition to enhancing Changan Group's position in the auto market, the sales of the new JV will also help boost the Group's profits.