Dongfeng, Peugeot to establish joint venture assembly plant in Vietnam
French automaker PSA Peugeot Citroen and its Chinese joint venture partner Dongfeng Motor Corp. will open an assembly plant in Vietnam and have already begun production in Malaysia, Chinese state media reported.
Dongfeng Peugeout Citroen Automobile is producing compact cars in cooperation with local firm Naza Group in Malaysia and plans to begin assembling in Vietnam this year in partnership with THACO Group, according to the official Xinhua news agency.
Officials at Peugeot and Dongfeng did not immediately respond to Reuters' requests for comment.
Last year, Peugeot and Dongfeng agreed on a 3 billion euro ($3.34 billion) capital tie-up, giving the French carmaker much needed funding to turn its business around.
The two companies also agreed that their China joint venture would aim to sell 1.5 million vehicles a year starting in 2020, as well as consider setting up a new company responsible for sales in the Asia-Pacific region, especially in Southeast Asia.
Officials at Peugeot and Dongfeng did not immediately respond to Reuters' requests for comment.
Last year, Peugeot and Dongfeng agreed on a 3 billion euro ($3.34 billion) capital tie-up, giving the French carmaker much needed funding to turn its business around.
The two companies also agreed that their China joint venture would aim to sell 1.5 million vehicles a year starting in 2020, as well as consider setting up a new company responsible for sales in the Asia-Pacific region, especially in Southeast Asia.
