PSA group and Dongfeng create a new brand in China
- Dongfeng, who is French group PSA’s main partner in China, also works for Renault-Nissan, Honda and Kia. Dongfeng is also a 15% shareholder of PSA.
- PSA was able to develop its sales in this country between 1990 (date of its establishment in China) and 2015 (date of the peak of sales established at 730,000 units). Then the French group experienced a vertiginous fall in sales, from 615,000 units in 2016 to 385,000 in 2017 and 275,000 in 2018.
- Oddly enough, Dongfeng, which distributes models under its own brand, also saw its sales rise sharply and plunge from 2017, from 740,000 units in 2016 to 695,000 in 2017 and 500,000 in 2018. The drop in sales of PSA and Dongfeng in 2018 is comparable, reaching 28% in both cases.
- To stop this free fall, the two partners decided to launch a new brand, called Fukang, a name recalling the old models derived from Citroën ZX and marketed in China between 1992 and 2009.
- Unlike the old Citroën Fukang, which were thermal-engined sedans, the future Fukangs will be and electric-powered sedans and SUVs, whose first models will be launched in 2019.
- Note that PSA also plans to launch the Opel brand in China over the next decade.
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