Dongfeng Peugeot Citroen starts building its third assembly plant in China

Article by Christian Andrei, on May 25, 2011

Dongfeng Peugeot Citroen Automobile Co., a 50-50 joint venture of Dongfeng Motor Corp. and PSA/Peugeot-Citroen SA, has started building its third assembly plant in Wuhan, China, last week. The joint venture will be constructing the facility in two phases.

It will start production in September 2013 with a capacity of 150,000 cars per year. By 2015, the plant’s capacity will reach a total of 300,000 vehicles, PSA disclosed in a statement.

This plant will be manufacturing car models based on the platform 1 of PSA. Along with auxiliary suppliers, warehousing and administrative facilities, the plant will include assembly lines for stamping, body-in-white, paint and final output. Currently, Dongfeng Peugeot has two plants in Wuhan with a total capacity of 450,000 vehicles a year.

The third plant will increase the partnership’s total annual capacity to 750,000 vehicles by 2015, Gregoire Olivier, the chief of the French automaker's operations in Asia, disclosed.

Established in 1992, Dongfeng Peugeot Citroen manufactures the Peugeot-badged 307, 207 and 408 cars, and the Citroen-branded C4 Quatre, Elysee, C5, C2 and C-Triomphe vehicle models at its two plants in Wuhan.

In 2010, the joint venture recorded sales of 373,400 units in China, obtaining a 3.2-percent share of passenger vehicle sales in the country.

Once the third plant goes to full operation in 2015, the joint venture expects a 5 percent increase in its market share. In order to expand in China quicker, PSA entered into another joint venture with China Changan Automobile Group Co. in July 2010.

Topics: peugeot, citroen, china

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