PSA has announced the construction of a 5th plant in China

In 2014, PSA’s production of passenger cars in China is expected to reach 700 000 units. This production is spread over 4 plants: 3 plants in JV with Dongfeng for a capacity of 750 000 units and 1 plant with Changan with a capacity of 200 000 units. Therefore the utilization rate of the PSA-DFM plant reached almost 74% and with an expected growth rate announced by PSA of almost 20% per year in future years, current production capacity will be saturated by 2016.


This is the reason why PSA and Dongfeng announced the construction of a fourth plant, which will be PSA’s 5th plant in China. The plant, will have a capacity of 250 000 units and will be located in Chengdu,  production should start towards the end of 2016.


The vehicles manufactured in the future plant have not yet been announced but they will probably be SUVs and MPVs from the Citroën, Peugeot and Fengshen brands (the DS brand being exclusively produced by Changan). We can therefore assume that the future Citroen SUV from segment B the CX-R (scheduled for 2015), will be one of the models produced in Chengdu.


In the first six months of 2014, PSA produced 355 000 passenger cars, which ranks it the 9th largest producer in China, behind Honda (416 000 units) and Ford (398 000 units). Despite its growth, the position of PSA should not change in the next five years as Honda (+16% in 2014) and Ford (+40% in 2014) have also experienced strong growth. Ford, however, could overtake Honda before 2020.

 

14-22-10  


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