PSA to formally land in Shenzhen on the 26th

PSA China | Ash | August 25, 2010 at 9:19 pm

The strategic contract between PSA and Chang’an Auto, which will see PSA move into Hafei Auto’s factory in the strategically important city of Shenzhen was signed today and will take yet another car maker into the metropolis.

PSA’s entry into Guangzhou province represents one of the first smart moves that PSA have achieved in China, its initial JV with Dongfeng to produce the Citroen and later Peugeot range in China started off well with the Citroen ZX becoming the car to own at one point, but soon slipped behind the competition, although PSA are working hard to rectify the situation with the launch of the Peugeot 408 and also the incredibly elegant Citroen C5 into China. The new JV is set to produce MPV’s and also the DS range of vehicles from Citroen.

The original joint venture agreement between PSA and Chang’an was signed on July 9th and will see the pair produce and sell, and also carry out joint R&D on new vehicles and also new energy vehicles in China. The first stage of the JV will see a production capactiy of 200,000 full cars and 200,000 engines which will be built in Hafei’s old factory.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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