Peugeot Citroen and Chang’an Automotive Group Partnership

Peugeot Citroen and Chang’an Automotive Group have signed the partnership to produce vehicles in China on 9 July, 2010. The establishment of a joint venture involving an initial investment of 8.4 billion yuan, equivalent to US$ 1.2 billion for production and distribution of light commercial vehicles and passenger car in China.

Initially, the focus of the partnership of Peugeot Citroen will introduce the Citroen DS and a new mark in the country.

The initial production capacity will be 200,000 vehicles a year. The cars production should start in the second half of 2012.

In an interview with British newspaper “Financial Times”, the Peugeot’s chief executive, Philippe Varin, said the French automaker to more than double its market share to 8% because of this Peugeot Citroen union.