French carmaker PSA Peugeot Citroen, Europe’s second largest, announced that it received approval from local Chinese authorities to start building its fourth manufacturing facility alongside partner Dongfeng Motor Group.
PSA – which took to a whole new level its partnership with the Chinese automaker when it sold some of its shares, making it a shareholder, next to the French state and the once ruling Peugeot family, is looking to further expand into China – the world’s largest auto market, as it mulls to shed dependence on the ailing European home market.
The new plant, located in Chengdu, central China, should start construction somewhere before the year’s end, with a planed production start for 2016. The factory should churn out the company’s SUVs and minivans, reaching a total production capacity of 300,000 units.
PSA already has three factories in China, all in Wuhan, with a total production capacity of around 750,000 cars – which means the fourth facility will raise the company’s potential to more than 1 million autos per year.
The French automaker targets sales of around 700,000 units this year in China – around 650,000 through the existing joint-venture with Dongfeng and the rest for its premium DS brand, with its cars made by another joint-venture with Changan Automobile Group.
Via Automotive News Europe