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PSA Peugeot Citroen to strengthen development strategy in China

Ally From www.gasgoo.com| June 13 , 2007

According to Du Sen, director of PSA China office, PSA Peugeot Citroen will concentrate on three development stages in China: Firstly, continue to put focus on Dong Feng Peugeot Citroën Automobiles (DPCA) and make all efforts to triple its productivity and capacity utilization in the near future; secondly, extend procurement and R&D business to the European countries and lastly, look for a second partner in China for more opportunities.

DPAC has just celebrated its 15th's anniversary this May. Since the first Fukang went off the production line in 1995, the company has achieved accumulated sales of 100 billion yuan with a volume of 900,000 units.

PSA Peugeot Citroen's first car plant in China, jointly established with Dongfeng Motor Corporation, will reach a capacity of 250,000 units this year and 400,000 by 2008. At the same time the construction of the second plant has already been underway, by 2009 the annual manufacturing capacity of the new plant is expected to reach 200,000, mainly focusing on the manufacturing of high-end sedans, Du said.

PSA Peugeot Citroen will position the brand more upscale to the Chinese customers, added Du.

Another official with the corporation said in a previous statement that the corporation has a share of about five percent of China's auto market, noting that the corporation will benefit greatly from the future development of Chinese auto sector.

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