PSA Peugeot Citroen and China’s Dongfeng Motor Group will invest together 200 million euros ($216 million) to introduce a new technology platform for small cars.
The Chinese automaker is not only the French carmaker’s local partner for the world’s largest auto market, but also one of the major investors in the group, starting with 2014. The collaboration to develop a new, small-car platform will give the affordable basis to deliver an expanding range of products that could lift deliveries in southeast Asia and China. The joint venture will seek to obtain sales of 800,000 units in the latter market in 2015 and then lift deliveries to more than 1.5 million vehicles by the start of the next decade, after selling 700,000 vehicles last year, according to PSA Peugeot Citroen. “The new platform will enable PSA Peugeot Citroen and DFG to manufacture vehicles in their respective growth regions,” commented the company.
Carlos Tavares, chairman of the French automaker’s managing board and also the chief executive officer for the company said on the sidelines of the Shanghai auto show, scheduled to start today, that local performance of the joint venture with Dongfeng was a crucial factor in the surprisingly rapid recovery of the group. For the new project, 60 percent of the money will come from PSA’s coffers and the to also plan to establish a joint technology center in Shanghai that would cater for the Asian markets.