PSA speeds up China expansion

Shanghai October 9 (Gasgoo.com) PSA Peugeot Citroen is very happy with its development in China and will thus increase its investment and bring more models to the Chinese market in the future, said Jean-Louis Chamla, vice president of international sales and marketing for PSA, Cheshi.com.cn reported Saturday.

At the 2010 Paris Auto Show, the French carmaker officially launched the new Citroen DS4 model that Cheshi.com.cn predicted will be introduced to China in 2011. In addition, according to Jean-Louis Chamla, PSA may also bring some higher-end models to China when both Citroen C5 and C4 production lines fall into place at its joint venture with Dongfeng Motor Corporation. That is to say, if its existing products perform well in the China market, PSA will probably put its flagship product, the Citroen C6, into local production as well.

In July 2010, China South Industries Group Corporation, Changan Automobile Group's major shareholder, signed an agreement with PSA on establishment of a 50/50 joint venture in China to develop a range of light commercial vehicles and passenger cars.

The new joint venture is currently awaiting government approval, said xavier duchemin, Citroen Marketing Director, adding that both sides expect to launch the joint venture in two to three years. With an initial production capacity of 200,000 vehicles and engines, the Changan-PSA venture will produce the Citroen DS cars, likely rolling out the DS3 model first. 

PSA will provide all its products in the world's largest auto market with upgraded powertrain systems, including the Start/Stop system (STT) and petrol-electric hybrid system, Jean-Louis Chamla said at the Paris Auto Show.