2 steps to save PSA in China: Following DongFeng & Utilize ChangAn

In 27th, Sep, the first Chinese automobile of ChangAN-PSA, DS5 appeared in the market and Sophie Marceau was invited to represent for this luxury brand at great expense. But PSA Europe is still in difficulties so its president focus his eye on China, hoping DS brand could rebirth and get emergency capital from Dongfeng Group. Thierry Peugeot also know there are uncertainties such as how to break out of luxury brands system and relationship with Dongfeng & ChangAn.

DS brand is positioned as French Luxury but it came into Chinese market much later than other luxury brands so its first-year sales target is only 20,000. Mr. Cal also disclose in conference he will be the general manager of ChangAn-PSA sales company, which is just like what other automobile joint ventures do. The most effective way to get rid of difficulties is to improve the output value so PSA will launch other 2 models in the following year and utilize ChangAn to bring in more brands of PSA.

PSA now is tasting bad days in Europe and China has been quite important market for its recovery plan. So there will be more cooperation with DongFeng automobile and one of them is PSA hope DongFeng could take over 30% of its stock and get emergency capital. The joint venture is another plan, but should be different from DPCA, also established by this 2 groups.