Chang’an to gain stake in PSA deal
From Reuters:
Chinese automaker Chongqing Changan Automobile (000625.SZ) will take over from its parent a joint venture with French car maker PSA Peugeot Citroen (PEUP.PA), the Shenzhen-listed company said on Thursday.
China Changan Automotive Group, which controls Chongqing Changan, has pledged to inject its stake in the joint venture, together with two other local assets, into Chongqing Changan when it is operational, Chongqing Changan said in a stock exchange filing.
The Changan-Peugeot joint venture will focus initially on launching Citroen’s DS line of premium small cars in China, as well as introducing a dedicated new brand for the venture, the companies said in July. [ID:nTOE66804B]
China Changan and Peugeot will invest a combined 84 billion yuan ($12.4 billion) in the 50:50 tie-up
Tweet This
Share on Facebook
Digg This
Save to delicious
Stumble it
RSS Feed
I will be interested in learning of the new designs of cars coming out.
French & Italian cars are odd balls in the world market. They may be strong in the EU local markets due to duty-free. In North America they even withdraw and disappear. In Asian market, they were pretty strong like the good old British before the rise of Japanese. The Chinese market to them is tricky, most of ordinary Chinese buy them because they are not domestic brands. They are ranked behind Japanese & Korean. With the better quality in domestic brands and the so-called domestic brands, I see no future for them in China.
You might be right. Peugeout did have to withdraw in the 90s from the Chinese market. Whilst I like the way French and particularly Italian cars I’m not sure I’d ever buy one. Then again I really do like Alfas!
What hasn’t helped the French is until recently their offerings in China were largely really outdated models. And still generally they sell the last generation models.