PSA Peugeot Citroen guns for sales in China

Jean-Martin Folz, Chief Executive Officer of PSA Peugeot Citroën, and Xu Ping, chairman of Dongfeng Motor Group Company Ltd, recently laid the cornerstone of the new plant of their joint venture, Dongfeng Peugeot Citroën Automobiles (DPCA), in Wuhan, China.

The new plant, which is dedicated to the production of vehicles built on PSA Peugeot Citroën’s platform 3, will enable Peugeot and Citroën to expand their line-ups by introducing upper mid-range models. Located on a 63-hectare site near DPCA’s existing plant, the 250,000m2 structure will comprise a body-in-white unit, a paint shop and an assembly line. The facility is scheduled to begin operating in 2009 and will produce 150,000 units a year in two shifts.

This latest investment in China has further strengthened DPCA's fast expanding production base, which already employs more than 9,000 people. The Wuhan plant currently produces eight different models and is gradually doubling capacity to 300,000 vehicles a year by 2008. Following the start-up of production on platforms 1 and 2 in China beginning in mid-2004, the new plant will further bolster the implementation of DPCA's product plan.

By the end of the decade, the joint venture will offer a comprehensive model line-up ranging from compact cars to large executive saloons. In 2006, PSA Peugeot Citroën introduced three new models: the Peugeot 206 in March, the Citroën C-Triomphe in May and the Citroën C2 5-door compact hatchback in October. Altogether, 11 model launches are planned between 2006 and 2009.

These development projects reflect both the Chinese market’s favorable outlook as well as DPCA's ability to bring to market automobiles tailored to the needs of local car buyers. DPCA sold 145,500 units in the first nine months of 2006, a 38 percent increase in a market enjoying sustained strong growth. The joint venture's full-year objective is to sell 200,000 vehicles.