What is the current situation of Chinese partners of PSA-FCA?
- With the future merger of PSA and FCA, it could be interesting to remind us the current status of their respective Chinese partners.
- Dongfeng who was the Chinese partner of PSA for the Peugeot and Citroën brands. Weakened by the poor performance of the French group over the last three years, Dongfeng had to stop the production of two production plants factories in joint venture with Peugeot and Citroën, as the factories from the Dongfeng-PSA JVs are only at 22% of their current capacity. PSA's management has however announced that it intends to boost the sales of these two brands in China over the next decade and that it will not abandon the Chinese market. The merger of FCA and PSA could be a way for Dongfeng to use its production capacity in the future.
- Consequently, GAC, which was FCA's Chinese partner, is unlikely to continue to be the partner of the new PSA-FCA group, regarding FCA brands. As for PSA, FCA suffered a collapse of its sales in China in 2019, and by contrast GAC, is growing with its own Trumpchi models, which put FCA as a marginal partner.
- Changan, which was PSA's Chinese partner for the DS brand, was the first to stop the cooperation with the French group.
The Changan-PSA plant is running at only 1% of its capacity due to extremely low DS sales. It will soon be out of business and future DS models sold in China are expected to be transferred to Dongfeng.
The Changan-PSA plant is running at only 1% of its capacity due to extremely low DS sales. It will soon be out of business and future DS models sold in China are expected to be transferred to Dongfeng.
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