PSA Peugeot Citroen, the second largest European automaker and its local joint venture partner in China, DOngfeng Motor, are planning to start vehicle production at an assembly facility in Vietnam, according to a report from China’s Xinhua news agency.
PSA Peugeot Citroen, a European automaker that stood on the brink of collapse recently, as the continent’s six-year slump led to a two-decade low figure for sales, has been looking to shed reliance on the home zone after it was saved through a capital expansion plan that brought in as stakeholders China’s Dongfeng and the French state. The Xinhua state news agency’s report has to do with the strategy, as the French group seeks to expand its footprint in Southeast Asia, after seeing tremendous success in China, the world’s largest single auto market.
Dongfeng Peugeout Citroen Automobile will start vehicle production in Vietnam later on this year thanks to a partnership with THACO Group, according to Xinhua, the official state news agency in China. They added the joint venture is already building compact cars in Malaysia in a deal with the local Naza Group. The two automakers have forecasted their Chinese joint venture would deliver 1.5 million units annually after 2020 and are now mulling the establishment of a new company that would lead sales in the Asia-Pacific region. PSA has been so far successful in its turnaround plan, with chief executive officer Carlos Tavares first positive results coming decidedly fast for the traditionally slower automotive industry and analysts are now calling for more ambitious growth plans for the company.
Via Automotive News Europe