Dongfeng Motor said that partnership with French automaker PSA Peugeot Citroen will not be limited only to the Asia-Pacific region, targeting also Russia and Brazil as possible markets.
The partnership signed earlier this week between PSA Peugeot Citroen and Dongfeng will help the French car maker with the needed cash and will offer greater access to the Asian market. The signing of the deal has been overseen by French President Francois Hollande and visiting Chinese counterpart Xi Jinping. Dongfeng Motor Group and the French government will acquire matching 14% stakes in Peugeot in a $4.1 billion capital increase.
Donfeng chairman Xu Ping said that the Asia-Pacific region is just a “starting point” in the two automakers’ tie-up. The two companies already have a solid joint venture in China and plan to expand their business in the world’s largest auto market and triple sales to 1.5 million units by 2020.
Chinese automakers, among which Dongfeng, have started to expand overseas by taking stakes in struggling car makers and by building manufacturing facilities. Dongfeng and Peugeot plan to reach a bigger market share inChinaby developing new vehicles, but also to increase exports to other markets inAsia.