Rumors appear regarding possible merger between Dongfeng Peugeot's two brands

Gasgoo.com (Shanghai February 29) - There have been rumors appearing recently that the Chinese half of the Dongfeng Peugeot Citroën joint venture may be pushing for a merger between the two French brands, changjiangtimes.com reported today. When asked about the topic, Dongfeng Peugeot Citroën said they had as of yet received no such request.

According to the rumors, further brand unification is necessary for the joint venture to further develop. If the merger went through, the JV would change its name to Dongfeng PSA. The management team would be streamlined, with one possible outcome being that one of two current presidents would lead the new JV.

However, several in the industry doubt the possibility of a large scale merger. As both brands are part of the same company (PSA) and have both been available in China for several years, the joint venture's strategy revolves around both of their presence in the market. "It's not reasonable to suddenly get rid of one brand, unless there [are plans to] create a new own brand," one unnamed analyst commented. Adding to the fact that Dongfeng already has an own brand whose vehicles are based off of PSA designs, the information doesn't seem credible, said analyst remarked.

In other news, a spokesperson from Dongfeng Peugeot commented that the joint venture expects its sales growth this year to be between 60,000 and 80,000 vehicles.