Dongfeng-PSA venture mulls 4th China assembly plant
Dongfeng Peugeot Citroen Automobile Co., a 50-50 joint venture between PSA Peugeot Citroen and Dongfeng Motor Corp., is considering a proposal to build its fourth assembly plant in China.
"At present, the plan for a fourth plant has already been put on the agenda," the joint venture said in a statement last week.
The company didn't disclose more details about the plan.
Last month, Dongfeng agreed to invest 800 million euros (6.8 billion yuan) for a 14 percent stake in PSA to ease the French carmaker's financial troubles.
"With the implementation of the global strategic alliance between Dongfeng and PSA, Dongfeng Peugeot is embracing a golden opportunity to accelerate its development," the joint venture said.
Dongfeng Peugeot now has three plants in the central China city of Wuhan which combined can build 600,000 vehicles a year.
The joint venture will run out of spare capacity if it maintains its current sales growth. In the first three months, it sold 165,158 Peugeot and Citroen vehicles, up 16 percent year-on-year.
The partnership aims to sell 650,000 vehicles this year, up from 550,000 units in 2013.
PSA also has a partnership with Chongqing Changan Automobile Co. in the south China city of Shenzhen. Last year, that venture started selling the locally built Citroen DS5.
The company didn't disclose more details about the plan.
Last month, Dongfeng agreed to invest 800 million euros (6.8 billion yuan) for a 14 percent stake in PSA to ease the French carmaker's financial troubles.
"With the implementation of the global strategic alliance between Dongfeng and PSA, Dongfeng Peugeot is embracing a golden opportunity to accelerate its development," the joint venture said.
Dongfeng Peugeot now has three plants in the central China city of Wuhan which combined can build 600,000 vehicles a year.
The joint venture will run out of spare capacity if it maintains its current sales growth. In the first three months, it sold 165,158 Peugeot and Citroen vehicles, up 16 percent year-on-year.
The partnership aims to sell 650,000 vehicles this year, up from 550,000 units in 2013.
PSA also has a partnership with Chongqing Changan Automobile Co. in the south China city of Shenzhen. Last year, that venture started selling the locally built Citroen DS5.
