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PSA to lift annual purchase in China up to 600 million euros
Shanghai. March 11 (Gasgoo.com) - PSA Peugeot Citroen will purchase annually EUR 600 million (RMB 6.5 billion) of auto parts from suppliers in China from 2010 on, the French automaker’s global sourcing official has said.
By the end of 2007, PSA has 1,307 employees for the purchase business worldwide. In 2004, it set up its first purchase center in Shanghai. The center currently has 50 sourcing staffers and it plans to increase the number to 100 by 2010. So far, the aggregated purchase volume of this center has reached EUR 350 million.
Last year, PSA’s joint venture in China, Dongfeng PSA sold 207,255 vehicles in Chinese market, up 3 percent from one year earlier. Not only is this growth rate much lower than a projected growth rate of 30 percent, but also much lower than the industry’s average growth rate of 22 percent.
Liu Weidong, general manager of Dongfeng PSA, said that total sales are expected to reach 280,000 units in 2008, with Citroën projected sales of 150,000 this year.
The executive said Dongfeng PSA plans to launch 5 new models in the Chinese market this year. Two of the models, redesigned Elysee and Peugeot 307 hatchback, will be launched in April, while Citroen C4, Citroen C5 and Peugeot 207 will go on sale by the end of this year.
The capacity of Dongfeng PSA's first plant in Wuhan will be raised to 300,000 units by 2008. And PSA's second plant in Wuhan, which will be put into operation by 2009, will have a capacity to produce 150,000 units annually. Citroen C5 will be the first model to be produced at the second plant in Wuhan.
Dongfeng PSA is also considering a third plant in China, but no decision has been made on its location. Sources say it could be either in Wuhan or Hangzhou.
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