Memorandum on new Changan Peugeot joint venture officially published

Gasgoo.com (Shanghai July 18) - The Changan and PSA joint venture has officially sent out a memorandum of agreement today, auto.163.com reported.

The National Development and Reform Commission granted permission to the new joint venture in late May. Changan commemorated the event by holding a celebration on the same day. Last month Changan unveiled the new logo for the brand.

Changan and PSA have invested 4 billion yuan ($621.9m) total to register the new joint venture, with an additional 8.4 billion yuan ($1.31b) planned to be put in later. Production capability for the new JV during its first phase is set to be 200,000 vehicles and 200,000 motors. Second phase production capability is estimated to be 500,000 vehicles.

PSA hopes to expand its total coverage in the Chinese market to 8 percent by 2015.