[KiwiGuy]

Article from China Car Times:

It is rumored that Chang’an Automobile and PSA are currently deep in talks to start a new joint venture in China
PSA have been in talks with various manufacturers since 2007 to start a second joint venture in China away from their sole partner, Dongfeng. Previously PSA were in talks with Hafei regarding a new JV, but apparently Dongfeng were not happy with PSA’s shopping for a new partner. A PSA insider was quoted by the Xin Kuai Bao newspaper as saying that Dongfeng were far from happy with the PSA-Hafei talks, and are certainly far from happy that PSA and Chang’an are now in talks since Hafei fell under the Chang’an umbrella.

A PSA-Chang’an deal is likely to be penned in after the Chinese new year, and will be operational sometime in 2011 according to media reports.

PSA is looking at China as a massive growth market, especially for its Peugeot brand which is aiming to sell 111,000 cars in China in 2010, and increase its 1.3% market share to something more respectable. Citroens growth in China has gone from being a market leader to a luke-warm situation, it could be that PSA are not happy with their Chinese partner, who do appear to be spread thin across their other JV’s, which include Nissan and Honda. On the other hand, PSA’s models have always been derided as being slightly behind its competitors in the technology area, and also the line up of Citroen and Peugeot have always been slightly anemic when compared to other companies.
PSA sold 270,000 cars in the Chinese market in 2009 which was an increase of 52%, and with 30,000 cars sold in one month alone. Citroen is the stronger of the two with sales of 159,900 cars sold in 2009, and Peugeot with 110,200 cars sold in 2009.

 

[CCF mod]

PSA, Changan to set up China joint venture

PSA/Peugeot-Citroen has reached an initial agreement to set up a 50-50 vehicle manufacturing venture with China Changan Automotive Group as it speeds up expansion in the world's largest auto market.

The China venture will make light commercial vehicles and cars, the companies said in a joint statement on Thursday.

The partners are still in discussion over the financial details of the venture, it said.

PSA, which already operates a car venture with Dongfeng Motor Group Co., lags larger rivals General Motors Co. and Volkswagen AG.

The lastest deal, if it goes ahead as planned, will enable it to secure a foothold in China's fast-growing light commercial vehicle market, where GM and Ford Motor Co. already have a head start.

It will improve the competitiveness of Changan, parent of Chongqing Changan Automobile Co, which runs a three-way tie up with Ford Motor Co. and Mazda Motor.

China, which eclipsed the United States as the world's biggest auto market last year, has been a major bright spot amid a global industry downturn and a safe haven for foreign auto giants.

GM, which already makes cars and light commercial vehicles with China's major auto groups SAIC Motor Corp. and FAW Group, is now selecting a site for a greenfield China plant, executives had said.

Ford in September last year broke ground for its third China plant.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100506/ANE/305069997/1131#ixzz0nA8UjTst

 

[CCF mod]

Changan-PSA JV deal to sign in July, to make MPV

June 30, 2010
The Changan-PSA venture finally gets some results. According to people familiar with the matter, executives of Changan Auto will fly soon to France to sign the final cooperation agreement with PSA Peugeot Citroen in July, and one of China's state leaders will also attend the signing ceremony, media reported today.

Early last month, Changan Auto entered into a preliminary cooperation agreement with PSA on establishment of a 50/50 joint venture based in Shenzhen, China. Under the agreement, the joint venture will produce small cars and commercial vehicles under the Peugeot and Citroen brand names.

It is reported that PSA's previous potential partner Hafei Auto, a mini-van maker now acquired by Changan, has built a plant in Shenzhen.

However, recent sources said that the first model to be built at the Shenzhen base will most likely be an MPV model imported from PSA. While PSA China and Changan Auto refused to comment on the report.

At present, PSA is designing two new models to meet the needs of the Chinese auto market and other emerging markets, with which the French automaker aims to break its dependence on the mature auto market gradually.

PSA aims to increase its China sales by 30% this year and to more than double its current 3.6% market share in China, now the world's biggest auto market, to 8% by 2020, with the sales to reach 2 million vehicles.

http://autonews.gasgoo.com/auto-news/1015808/changan-psa-jv-deal-to-sign-in-july-to-make-mpv.html

 

[CCF mod]

Peugeot, Changan Auto to sign JV deal on July 9

PSA Peugeot-Citroen and China's Changan Auto are set to sign a final deal tomorrow for a vehicle-making joint venture based in southern China as the French carmaker's second Chinese partnership, media reported today, citing a PSA executive

PSA, Europe's second-largest carmaker after Germany's Volkswagen AG, already has a joint venture in China with Dongfeng Motor Corp for producing its Citroen and Peugeot cars. The new move will help the French automaker tap more into the fast-growing Chinese auto market, now the world's largest.

In May, PSA and Changan signed a letter of intent for creating a 50-50 venture to produce eco-friendly passenger cars and light-commercial vehicles. A final agreement will be signed on July 9, Jean-Marc Gales, director for Peugeot brands, said yesterday. The new JV may be located in southern Chinese city of Shenzhen.

Peugeot-Citroen's China sales increased 49% in the first half of the year to more than 176,000 vehicles, lifting market share to 3.3% from 3.2% of a year earlier. The Changan JV may help the French carmaker hit its goal of selling 2 million vehicles annually in China by 2020.

PSA expects its China sales to reach 400,000 cars this year, nearing the 450,000-unit capacity of the current two plants of its Dongfeng venture, which is planning a third plant.

http://autonews.gasgoo.com/auto-news/1015913/peugeot-changan-auto-to-sign-jv-deal-on-july-9.html

 

[CCF mod]

Peugeot, China's Chang'an Create Joint Venture

Automotive group PSA Peugeot-Citroen (UG.FR) and China's Chang'an Automobile Group Friday created a joint venture to make and market passenger cars and light commercial vehicles.

The move is designed to allow the French company to cash in on the booming Chinese automobile market and make it a major player. It is also part of Peugeot-Citroen's strategy to reduce its dependence on the mature European market for the bulk of its sales and profits.

Peugeot-Citroen Chief Executive Officer Philippe Varin signed documents creating the 50-50 jointly owned company with Xu Bin, president of China South Industries Group Corp, Chang'an's main shareholder, at a ceremony in Paris.

The two companies are making an initial investment of EUR935 million in the venture that will have an initial annual production capacity of 200,000 vehicles and engines at Chang'an's plant at Shenzen, in Guangdong province. The partners will renovate an existing mothballed assembly line to build light commercial vehicles, and will build a new assembly line at the facility that will make cars.

The project will see the launch in China of Citroen's new DS range, distinctive vehicles with premium-type features and finish. The first of those, the sub-compact DS3, was launched in March in Europe and is selling so well that Peugeot-Citroen has already decided to increase the production rate.

The company will import the DS3 into China in kit form, CEO Varin told reporters on the sidelines of the event. Other, larger, DS models will be introduced later and produced locally, he said.

The Citroen DS range won't compete with Citroen models made by Peugeot-Citroen's existing joint-venture with Dongfeng Automobile Co Ltd (600006.SH) that makes and markets vehicles for the Citroen and Peugeot brands. This joint-venture has an installed annual production capacity of 450,000 vehicles in two assembly plants, and the two partners are considering a further capacity increase with the construction of a third plant.

Peugeot-Citroen and Chang'an are also creating a new brand with a separate identity from those of the French company or Chang'an, Gregoire Olivier, Peugeot-Citroen's recently appointed head of Asian operations, said.

Peugeot-Citroen, Europe's second-largest car maker by volume after Germany's Volkswagen AG (VOW.XE), sold 176,000 vehicles in China in the first half of this year, up 49% from a year earlier in a market that grew by 27%. However, its market share remained small, at 3.4%. Varin said he is aiming to more than double the market share to around 8%, largely because of the new joint venture, but declined to set a target date.

With a production capacity of 2.2 million vehicles annually, Chang'an is China's third-largest vehicle manufacturer. It has other joint ventures with Ford Motor Co (F) and Suzuki Motor Co (6785.JA).

Commenting on recent reports that Peugeot-Citroen is planning an industrial investment in India, a country from which it is absent, Varin said that his priority right now is to develop his company's presence in China and other fast-growing emerging markets, notably in Latin America.

"Clearly, we can't ignore India," Varin said.

He cautioned, however, that a move in this direction would require the company to achieve a market share big enough to give it the critical size necessary to produce a decent return on investment.

http://online.wsj.com/article/BT-CO-20100709-704482.html

 

[CCF mod]

Cooperation between Changan and PSA gains government approval

Cooperation between Chongqing Changan Automobile and international giant PSA Peugeot Citroën has gained the National Development and Reform Commission's approval last week, 21cbh.com reported today. Officials within PSA said that although they believed the deal would go through, they were surprised at the speed with which the NRC gave its approval.

Changan and PSA signed a cooperation agreement last July and have been awaiting the NRC's approval ever since. The two manufacturers have been waiting for a clear sign of government support before commencing bilateral cooperation on a slew of projects, including building a new jointly-owned production site.

PSA will not only be in contact with its Chinese partner, but must also work with the government as well. Grégoire Olivier, a senior executive in the manufacturer's Asian division, told reporters he has recently met with the country's Minister of Commerce Chen Deming. Mr. Olivier confirmed that there were no large obstacles standing in the way to cooperation with Changan.

http://autonews.gasgoo.com/china-ne...n-changan-and-psa-gains-governme-110602.shtml

 

[CCF mod]

Changan-PSA, the joint venture of Changan Auto and PSA Peugeot Citroen, unveiled on Monday an official logo based on the abbreviation of its company name, CAPSA. The message and emblem were posted through Changan’s account on the microblogging site of weibo.com (weibo.com/ccag). We also learned that the JV’s official website, capsa.com.cn, will open soon.

Equally owned by the two sides, CAPSA was approved by the Chinese government on May 24, 2011. With 8.4 billion-Yuan initial investment, it aims to create a production capacity of 200,000 vehicles a year in Shenzhen, where it will be based, and take 3% of the Chinese auto market by 2015. Peugeot- and Citroen-brand cars will be made alongside those of a local brand yet to be launched.

logo:

source:
http://chinaautoweb.com/2011/06/wordmark-of-changan-psa-capsa-unveiled/

 

[dmitra]

On the day the proposed mega-merger between the PSA and FCA groups was announced, Chinese media reported that Changan Auto had put 50% of the shares of the JV company up for sale on the Chongqing property rights exchange market three days ago.

Changan PSA, among the worst performing Sino-foreign car JVs, sold a mere 3,900 DS in China in the whole of 2018, and this year till September-end managed to move just over 2,000* DS cars. Their plant in Shenzhen is now manufacturing the CS85 exclusively for Changan, which makes up the bulk of production.

*CAIN data; CAAM reports ~1,200.

 

[dmitra]

A commentary:

http://www.sohu.com/a/351223414_156839

 

[dmitra]

Now, PSA is ready to sell its 50% in CAPSA:

Peugeot maker PSA Group (PEUP.PA) said it is preparing to sell its 50% stake in an eight-year-old joint venture with Chinese partner Chongqing Changan Automotive (000625.SZ) which has struggled with falling sales.

https://www.reuters.com/article/us-psa-china-changan/psa-readying-sale-of-its-stake-in-chinese-tie-up-with-changan-idUSKBN1Y225Q

 

[dmitra]

Baoneng takes over CAPSA

The 50% stake in Changan PSA that was put up for sale by Changan Auto has been picked up by Shenzhen Qianhai Ruizhi Investment Co., Ltd., a 100% financial subsidiary of Baoneng Automobile Co., Ltd. (宝能汽车有限公司). The cost of this acquisition is 1.63 bn RMB.

Furthermore, Groupe PSA has signed an equity transfer agreement with the above Qianhai Ruizhi for the other 50% of Changan PSA. The transaction amount has not been disclosed.

When everything is signed and sealed, Baoneng will receive the Shenzhen production base for cars and engines (200,000 units p.a.) along with R&D center, a logistics area, and some unused industrial land. Baoneng will get the production license too (its second), but I think there will be no transfer of product IP.

Groupe PSA will set up a fully-owned company for management and sales of brand DS. Both local and imported vehicles will be offered through this channel. The Shenzhen plant will continue to supply Chinese-made DS vehicles under an OEM contract.

https://finance.sina.com.cn/chanjing/gsnews/2020-01-02/doc-iihnzhfz9870910.shtml
http://www.nbd.com.cn/articles/2020-01-02/1397823.html

 

[dmitra]

Changan Peugeot Citroen Automobile Co., Ltd. has been formally renamed to Shenzhen [City] Baoneng Automobile Co., Ltd. (深圳市宝能汽车有限公司).

http://news.bitauto.com/zonghexinwen/20200521/2311684084.html

__________________________
Off-topic:

In the aftermath of a severe storm in our corner of the world, data/internet services have been greatly compromised (I am unable to even watch TV), so it might become difficult or impossible for me to post any content over the next few days until services are restored to some extent.

See:
https://en.wikipedia.org/wiki/Cyclone_Amphan

 

[erik (laofan) cmvdc]

DMitra, I just read in the newspapers, I am sorry to hear that people have died. Hope things are soon going back to normal, you already have the severe confinement.

 

[Lawrence]

D Mitra,
We hope you are safe and sound in the wake of the terrible storm. Unfortunately the western press' radar is in sad shape due to partisan obsession, and so we have to rely on CCF contributors, like Erik, to make us aware of such tragedies in the world.
Wishing you and yours an early recovery.

 

[dmitra]

Thank you, Erik and Lawrence, for your supportive sentiments. We (individual families and as a community) are trying to manage the situation as best as we can.