Dongfeng Peugeot Citroen third factory has a cumulative output of 800,000

Shanghai (Gasgoo)-Recently, the 800,000^th vehicle rolls off the production line in the third factory of Dongfeng Peugeot Citroen. The third factory always keeps a high growth in production volume since it went into operation in the year 2013. Its production volume grows eight times in three and half years’ time, since its 100,000^th vehicle went off the production line in the end of May, 2014.

The factory has two-phrase projects with the production volume for three new models reaching 100,000 units in ten months’ time, creating many new records in its history. Currently, it has a total annual production volume of nearly 190,000 units.

But the joint venture’s second factory, renowned as “PSA Group Global Sample Factory”, is said to be sold to Dongfeng Honda recently. Although both two sides cleared the rumor, the industry puts great attention on the case, resulted by French brands’ bad performance in domestic market in the recent two years.

Public data shows that the market share for French brands in domestic market is 2.5% in 2016 and decreases to 1.72% in 2017. The joint venture adjusts its sales target from 700,000 units to 402,000 units this year. Recently, Dongfeng Citroen and Dongfeng Peugeot all face great personnel changes, aggravating the instability. Dongfeng Peugeot Citroen promoted the “three step” strategy in the year 2018-2023 during an inner meeting to recover the market performance.

An Tiecheng, Board Chairman of the joint venture, makes it clear that the three most important targets are market share reaching 3%, operating profit ratio exceeding 5% and quality ranking top 3 among all brands. Therefore, Shenlong Auto conducts a series of measures in accordance with the market environment and company’s operation condition, including decreasing dealerships’ inventory, adjusting commercial policies, lifting dealerships’ confidence and conducting reform in marketing.