PSA Peugeot Citroen and China’s Dongfeng Group (DFG) held an event yesterday in Shanghai to mark the first anniversary of their strategic partnership signed in March 2014. The event was attended by PSA chairman Carlos Tavares and DFG chairman Xu Ping.
At the event, the two bosses announced a project to jointly develop a global platform for the manufacture of B and C segment vehicles under Peugeot, Citroen, DS and Dongfeng brands. The new Common Modular Platform (CMP) is expected to provide effective solutions in terms of modularity, versatility, equipment and carbon reduction.
CMP will enable PSA and DFG to manufacture vehicles in their respective growth regions with reduced cost. In China and our ASEAN region, the French group will benefit in particular from DFG’s supplier base expertise, which will make it possible to meet ambitious cost targets in highly competitive segments.
The project calls for capital expenditure of €200 million (RM782 million), of which 60% will be committed by PSA and 40% by DFG. A liaison team of DFG engineers will be located in Vélizy, France, within the main project team. A joint R&D centre based in Shanghai that dedicated to developing products and tech for fast-growing Asian markets will also be set up.
“The first partnership year was very eventful, with DFG’s acquisition of an interest in PSA, the creation of new sales joint ventures for China and ASEAN countries, and DPCA’s launch of the new-generation Fengshen vehicles,” Tavares said.
“With the CMP on stream from 2019, and with the joint R&D centre, the two groups will put strategic resources in place to accelerate their international expansion, particularly in China and ASEAN, where the goal is to sell 1.5 million vehicles by 2020,” he added.
Interestingly, Dongfeng is also the Chinese partner for PSA’s French rival Renault, and the JV will built Renault’s latest Kadjar C-segment SUV. One leg standing on two boats, as the Chinese say.
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What is the benefits of sharing platform with Chinese cars if Chinese still copycat other car designs?
You don’t share they copy also. You share at least they give you money. So 1 case, u lose everything, another case u get something out of the deal. Which 1 you choose?
So all the losers can dapao together.
Do u know that dongfeng is one of the largest shareholder of PSA? This will explain why all these joint venture and common platform.
In be4 the no quality of dongfeng, the unreliability of peugeot, and the no RV of citroen. All in 1 package
John…the difference is the Chinese gets to buy the car at equal quality versus european made & at prices cheaper than what you pay for a Proton Preve. This is to ensure PSA workers in EU plants still keep their jobs while making greater inroads in China.
See, proton basher is already in the house. Everything must related and involved proton. Chill la….
@Middle Age Driver. If you think just having a JV partnership with EU brands will give u EU quality cars at China prices, then you are so wrong.
I worked with both JV-type vehicles and true EU vehicles and the are night and day. we called the Fake-Europe and Real-Europe.
The price will be cheaper, but your definitely getting what you paid for, nothing more.
Preve for its price, is worth the money. Better that any China brands
See, the proton basher is already in the house. Everything about car will be related to proton. Chill bro..