Paris, France – Peugeot Citroën and China Changan Automobile Group have signed a joint venture that will develop a range of passenger cars and light commercial vehicles in China, along with the launch of the Citroën DS line in China, the introduction of a new brand, and an R&D centre that will focus on alternative energy sources.
Based in Shenzhen, in Guangdong Province, the joint venture will have an initial annual production capacity of 200,000 vehicles and engines, operating two production lines through the renovation of an existing line and the building of a new line. Each will produce a specific range of vehicles.
The new company will be capitalized at RMB 4 billion, to be shared equally by the two partners. The first vehicle is scheduled to be launch in the second half of 2012.
China Changan is the fourth-largest automaker in China, and currently comprises 21 automobile production companies, including a number of joint ventures such as Changan Ford Mazda and Changan Suzuki.