Alongside the auto show in Beijing that is currently the vice-president of Chinese automaker Changan Automotive has confirmed that an agreement could be reached in a month or two, the establishment in Shenzhen – in the princince Guandgong – a joint venture with Peugeot, owned equally by both partners.
Discussions are therefore underway. But Friday morning, PSA declined to comment and said "do not confirm that information," the French group was described as "rumor" he yaa ten days, while the Chinese press spoke of the reconciliation, confirmed by sources close to the matter.
Geographical complementarity with Dongfeng
Peugeot performs this morning that his priority is "the development of (its) existing partnership with Dongfeng.This joint venture is that we must advance and on which we focus our attention, "said an official communication of PSA.
But, Dongfeng does not cover all of China. This company is based in Beijing and in the center, but not on the east coast, including Shanghai, a rapidly growing region, where Changan is found. A geographical compl?menrit? was highlighted by an internal source at PSA few days ago.
The French manufacturer had initiated discussions in 2007 with China's Hafei, but they had failed.Since then, Hafei has been swallowed by Changan.
Changan, the third Chinese automaker
In 2009, sales of PSA's biggest car market on the planet since January – with 2.6 million vehicles sold in the first quarter – rose 52% to 272,000 cars, compared to 2008, while in first quarter 2010, they jumped 70% over a year. For the full year, the manufacturer is 350,000 copies, thanks to the Citroen C5 and its new Peugeot 408, which will be launched soon.
The PSA remains a tiny player in the Chinese automotive landscape with 3.4% market share. But if the negotiations succeed, Peugeot would be associated with the third Chinese automaker. After acquiring several subsidiaries of the group Avic public in late 2009, Changan was strongly reinforced in his country.The joint venture is interested in the commercial vehicles.
Peugeot will start production in Russia
Straight to the emerging countries. Peugeot maintains its strategy to expand in the economically dynamic and promising prospects.
Russia is a perfect example. The carmaker is launching today the production plant built with Russian co-Mitsubishi.
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