PSA Peugeot Citroen enters joint venture in China

PSA recently announced that it will do a joint venture with Changan Automobile Group in China.

The two sides have exchanged letters of intent to work together to produce passenger cars and commercial vehicles to supply to the Chinese market.

PSA explained that the new deal with Changan will not affect its prior commitment with the Dongfeng Motor Group Company. The French car manufacturer is planning to gain a chunk from the booming LCV market of China which is at the moment dominated by American companies like Ford and General Motors. Concurrently, PPSSA wants to narrow the gap in terms of passenger cars sales figures with Volkswagen and GM.

Changan already operates a tie up with Mazda and Ford on a three way deal.

China is now the biggest car market overtaking the United States last year. Every member of the pack of Western car manufacturers showed their force at the recent Beijing Motor Show and practically has made their intentions known. Citroen also showcased their luxury saloon tagged as the Metropolis via the Shanghai Expo that opened gates last week.