China’s Chang’an Automobile Group and PSA Peugeot break ground in Shenzhen

Sixteen months after signing an agreement in Paris, China’s Chang’an Automobile Group and PSA Peugeot Citroen broke ground in Shenzhen, Guangdong province, in late November. Chang’an Automobile Group, China’s fourth largest automaker and the French car manufacturer PSA Peugeot Citroen will equally fund the 8.4 billion yuan (US$1.32 billion) initial capital. Projections for the joint venture is an initial output of 200,000 vehicles and engines once the plant becomes fully operational by mid-2013. There will also be a 500 million yuan (US$78,000,000) research and development center in the facility. The joint venture will produce vehicles carrying the Peugeot, Citroen and Chang’an brands, and a new brand will be created for the local market. Prior to production, the joint venture will import high-end Citroen DS series models next year. There are also plans to open 20 to 25 outlets towards the end of next year and expand to 200 outlets by 2015. (November 28, 2011)