Changan-PSA venture be based in Shenzhen

　　According to Economic Observer Online, two months after the “Engagement”, Changan Group and the French PSA, will hold their “wedding” in Friday (July 9) officially. By then, the two partials will sign a formal joint venture agreement in Paris. The new joint venture will be located in Shenzhen.

　　The reporter was informed by the source, that today (July 7), CCAG President Xu Liuping will leave to fly to France to attend the signing ceremony on the creation of an equally owned joint venture by China Changan Auto Group Corporation (CCAG) and French leading carmaker PSA Peugeot Citroen in China.

　　The contract was signed by Xu Bin, president of China South Industries Group Corporation, Changan’s main shareholder, and Philippe Varin, chairman of the French part's Managing Board,

　　“The progress of bilateral cooperation has been very fast!” the source said. PSA spent seven years looking for a second partner in China while reached an agreement in just two months. It is reported that Dongfeng Motor Group, the first partner of PSA in China, has been aware of the signing ceremony on July 9. For the agreement, the two parties did not reveal further details, but said would launch official announcement to the media later in July 9.

　　May 4, 2010, Changan Auto entered into a preliminary cooperation agreement with PSA on establishment of a 50/50 joint venture based in Shenzhen, China. Under the agreement, the joint venture will produce environmentally friendly light commercial vehicles and passenger cars under the Peugeot and Citroen brand names. June 21, President of PSA Group and Chairman of Executive Committee, Philip Varin paid a visit to China and met with Xu Bin, General Manager of China South Industries Group and Xu Liuping, president of Changan Automotive Group to discuss again and finalize the previous agreement of intent.

　　At present, although China has become the world’s second largest market to PSA, Dongfeng Peugeot Citroen Automobile Group, its joint venture with Dongfeng Automobile Group sold out only unsatisfactory 270,000 units, a result has a wide gap with other first-line joint ventures. PSA is eager to find a new partner in China to improve market share and to build fulcrum of its global strategy.

　　(Translator: Yalong/Jessie)

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100707/n273347455.shtml