Xu Ping, chairman of Dongfeng Motor Group, remarked that the carmaker’s cooperation with PSA/Peugeot-Citroen is not restricted to certain geographical regions, with Brazil and Russia being considered. He remarked that Asia-Pacific region was just a starting point for the carmakers, which recently inked an alliance provided funds to the cash-strapped French carmaker.
Incoming PSA chief executive Carlos Tavares has singled Russia and South America as regions where it must improve its financial performance. PSA and Dongfeng -- which operates a joint venture in China – intend to develop new cars with an aim to capture a larger share of Chinese vehicle market. The carmakers also targets to triple overall sales in China to 1.5 million vehicles by 2020.
PSA and Dongfeng also seek to export more vehicles to other markets in Asia, particularly in southeast Asia. Chinese carmakers have been ramping expanding overseas by building plants and taking stakes in struggling foreign carmakers.
Presidents of China and France graced the signing of the framework agreement that entails the French government and Dongfeng taking matching 14 percent stakes in PSA. [source: automotive news - sub. required]