Dongfeng and PSA to intensify partnership

Gasgoo.com (Shanghai August 21) - Dongfeng Peugeot Citroën President Qiu Xiandong made an announcement recently at the joint venture's factory in Xianyang, Hubei, 21st Century Observer News reported today. Mr. Qiu stated that the joint venture's current strategy has shown success and that the it is currently formulating the next stage of its partnership.

In 2012, Dongfeng Peugeot Citroën began upgrading its powertrain assembly line. The Xianyang factory produces six different engine types taking advantage of STT Micro Hybrid technology. The factory played a crucial role in the JV's so-called 'e-power strategy'.

Ever since Dongfeng Group acquired a share in PSA this March, the two parties have been intensifying their cooperation in domestic engine manufacture. According to sources close to the matter, Dongfeng has sent six teams to negotiate with PSA on individual projects, including technology R&D and introduction of new technology. The projects will play a role in helping bringing micro hybrid, plug-in hybrid and pure electric models to the country.

Dongfeng Peugeot Citroën's Xianyang factory also announced its new T STT core powertrain line, including 2.3 L CVVT, 2.0 L CVVT, 1.8 L CVVT, 1.6 L CVVT, 1.8 THP, 1.6 THP and 1.2 THP engines. The JV hopes to take advantage of the fondness Chinese consumers have for new technology and products.

Dongfeng Peugeot Citroën has seen its sales increase dramatically over the last few years. In 2012, the JV sold a total of 440,000 vehicles. That figure increased to 550,000 vehicles the following year. The JV's sales target for this year is set at 600,000 vehicles.