PSA/Peugeot-Citroen’s plan to construct a new China car plant with Dongfeng Motor Group is on course, according to Asia chief Gregoire Olivier. As early as 2011, PSA may start exporting to other countries from China.
PSA, which has been in partnership with Dongfeng Motor for a long time, is on a fast-track expansion in China (the world’s largest auto market) where General Motors Co. and Volkswagen AG currently dominate.
Last July, PSA entered a deal with China Changan Automotive Group. PSA’s third car facility with Dongfeng will start construction at the end of 2010. This plant is expected to provide PSA with a combined annual capacity of 400,000 units.
Olivier clarified to reporters that these plants are intended for the market in China and that the exports will start gradually. He added that the company is working on a logistic platform in Shanghai to start exports in Asia in 2011, “but this will be small volume."
At the moment, China is PSA’s second-largest market. In 2010, the Dongfeng venture is predicted to sell 350,000 cars, a 28.7% from a year ago. PSA has set a goal to someday account for 8% of China's auto market, up from the current 3.3% share.
Olivier said that for its start-of-the-art r&d center in Shanghai, he submitted a proposal to nearly triple the number of engineers from 350 to 1,000. [via autonews - sub. required]