Peugeot and Chang'an shack up for new vehicle joint-venture

PSA Peugeot-Citroën already sells its wares in China and has a joint-venture with Dongfeng, but has now added another joint venture partner in a €395 million ($499M U.S.) 50-50 tie-up with Chang'an Automobile Group. The union will eventually have cars like the Citroën DS3 and the company's engines and light trucks built in the country, using two current Chang'an factories, renovating one more and building another.

The difference in the two joint ventures is that Dongfeng makes and markets cars under the Peugeot and Citroën brands. Peugeot-Citroën and Chang'an, however, are creating a third brand together. What kind of vehicles that third brand will sell hasn't been disclosed. With Dongfeng and Chang'an, Peugeot-Citroën will have 650,000-vehicle production capacity in China, but Peugeot is considering raising it's 450,000-unit capacity with Dongfeng. The French company sold 176,000 cars in China through June, a 49% jump over last year.