PSA to formally land in Shenzhen on the 26th
Published August 25, 2010
The strategic contract between PSA and Changan Auto, which will see PSA move into Hafei Autos factory in the strategically important city of Shenzhen was signed today and will take yet another car maker into the metropolis.
PSAs 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 MPVs and also the DS range of vehicles from Citroen.
The original joint venture agreement between PSA and Changan 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 Hafeis old factory.