Car maker PSA Peugeot Citroën (PEUGF.PK) Friday said it has signed a contract with China South Industries Group Corp., the main shareholder of automobile manufacturer China Changan Auto Group Co., Ltd., to create an equally-owned automotive joint venture in China.
The joint venture, based in Shenzhen in Guangdong Province, is estimated to have an initial annual production capacity of 200 thousand vehicles and engines, which are anticipated to meet the highest environmental standards.
As per the contract, the joint venture, which is subject to final approval by the relevant authorities, will operate two production lines through the renovation of an existing line and building of a new line. Each of the production lines will produce a specific range of vehicles. PSA Peugeot said the joint venture will also have an R&D centre.
"Pooling the expertise of two industry leaders, one Chinese and the other European, the joint venture will produce and market light commercial vehicles and passenger car line-ups in China. The partners will initially focus on introducing the Citroën DS line in China and launching a dedicated new brand for the venture. The contract also allows for the joint venture to market, at a later date, further vehicles under the partners' other brands, Peugeot and Changan," PSA Peugeot added.
Paris-based PSA Peugeot noted that the new company will be capitalised at RMB 4 billion, to be shared equally by the two partners, and will be backed by an initial investment of RMB 8.4 billion or EUR 935 million. The first vehicle is scheduled to be launched in the second half of 2012.
PEUGF.PK last traded on October 7 at $26.75 per share on the Pink Sheets.
For comments and feedback contact: editorial@rttnews.com
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.