PSA and Dongfeng to strengthen JV with expansion

---

PSA are eager to strengthen their market share in China and are planning to improve their multiple JV’s with Dongfeng Auto after striking a new JV with Chang’an Auto to produce MPV’s and the Citroen DS range in Guangdong province.

PSA Group are planning to launch up to 12 new models in the Chinese market over the next five years and is likely to start with the production of the Peugeot 508 in 2011, and will then continue to produce other new models including an SUV offering and other passenger vehicles. Dongfeng and PSA are also planning to build a new factory in China, although an official site has not yet been named it is likely to be in Dongfeng’s hometown of Wuhan and will be the third factory that is operated by the two. The third factory is set to increase PSA’s production capacity to 750,000 vehicles per year by 2015 from the current figure of 450,000.

PSA has seen sales grow this year in China after a lack luster 2009, Citroen appears to be leading the way in terms of sales and its most recent launch, the Citroen C5 achieved average monthly sales of 1500 units since its launch earlier this year, the Citroen C4 hatchback remains the strongest model in the Citroen line-up. The Peugeot 408 sedan saw strong sales in April and May of this year with 6,104 and 5,771 sales respectively, but this had tapered off to 3,226 sales by August this year.