PSA Peugeot Citroen Boosts China's Dongfeng Motors Partnership

French car maker PSA Peugeot Citroen (UG.FR) Tuesday said that it was strengthening its partnership with China's Dongfeng Motor Group Company Ltd (DNFGY) through their Dongfeng Peugeot Citroën Automobiles, or DPCA, joint venture.

The reinforced partnership will give the joint venture additional resources to speed its growth in the world's largest market, and these initiative will enable DPCA to achieve its goal of a 5% share of the Chinese market by 2015, Peugeot said in a statement.

PSA Peugeot Citroen and Dongfeng Motors have defined new corporate governance guidelines for the joint venture which will enhance DPCA's ability to adapt and respond quickly to the Chinese market, the French group said.

Also, the reinforced partnership calls for the launch of at least one new vehicle per year and per brand, for a total of 12 new DPCA models over the next five years.

To support DPCA's rapid growth in sales--which doubled between 2008 and 2010--PSA Peugeot Citroen and DFM have decided to provide the joint venture with a third automobile production plant, it said.

DPCA is continuing to develop the Dongfeng Peugeot and Dongfeng Citroen sales networks. By 2012, each brand will have dealerships in China's 300 largest cities backed by an additional network of several hundred agents, the company said.

Company website: www.psa-peugeot-citroen.com

-By Geraldine Amiel, Dow Jones Newswires; +33 1 4017 1740; geraldine.amiel@dowjones.com;

Dongfeng Motor (PK) (USOTC:DNFGY)
Historical Stock Chart
From Jun 2024 to Jul 2024