Changan to internally transfer its stake in the Changan PSA JV

Gasgoo.com (Shanghai November 29) - Changan Automobile Group is yielding its 50 percent stake in the Changan PSA joint venture to subsidiary company Chongqing Changan Automobile, the Nanfang Daily reported today, citing a statement made by the Chongqing United Assets and Equity Exchange. The news has already been confirmed by officials from Changan PSA.

Changan Group's is selling its stake in the JV for two billion yuan ($318.68m). Given the JV's 50:50 nature, this means that its total registration capital will be four billion yuan ($637.37m), well above the minimum legal requirement of 3.5 billion yuan ($557.71b).

Changan PSA's primary investment will total 8.4 billion yuan ($1.34b), making it the most expensive Sino-foreign JV in recent history. The JV's first independent production site, located in Shenzhen, Guangdong, will be able to manufacture 200,000 vehicles, as well as the engines they will use. Domestic production of the Citroën DS line will begin next year.