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PSA Peugeot Citroën to establish JV minibus project with Hafei

PSA Peugeot Citroën and the Chinese carmaker Hafei signed an MOU on 29 June to start a feasibility study on a 50-50 joint venture to manufacture sub-10-passenger minibuses for the Chinese market. The vehicles will be produced at Hafei's plant in Shenzhen.

PSA Peugeot Citroën currently operates in China through Dongfeng Peugeot Citroën Automobiles (DPCA), a 50-50 joint venture with Dongfeng Motor. DPCA sold 201,300 vehicles in 2006 and 87,100 in the first five months of 2007. Hafei is a subsidiary of the AVIC aeronautics company, and produced 260,000 cars in 2006
 

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By Jin Jing 2007-9-12
source: SHANGHAIDAILY.com

PSA Peugeot Citroen has tied up with Harbin Hafei Automobile Industry Group Co to form its second Chinese joint venture, part of the French car maker's plan to boost sales in emerging markets as it tries to revive its fortunes globally.

A total investment of two billion yuan (US$266 million) has been pumped into the equally-owned Shenzhen-based joint venture which will be mainly responsible for making vans, according to an e-mailed reply from Peugeot Citroen China yesterday.

"The official contract will be signed as early as the year end and the first model is expected to hit the market next year," Europe's second-largest car maker said in the statement.

The two partners signed a memorandum of understanding earlier this year in June.

The car maker has a cooperation deal with Dongfeng Motor Co Ltd, China's third-largest car maker, to produce passenger cars.

Sales totaled around 210,000 units in China last year, including the best selling Peugeot 307 and C-Triomphe sedans.

The new joint venture with Hafei is crucial to help Peugeot achieve a sales target of one million units in China by 2015 and with a five-to-six percent market share, according to Denis Duchesne, president of PSA China.

It's the first time Peugeot has drawn up an ambitious plan for the Chinese market since Duchesne took up his post in June this year.

The Paris-based car maker plans to double the production capacity of its plant in Wuhan City, central China's Hubei Province, to 400,000 by 2009, which would further expand to 600,000 by 2012.
 

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From China Car Times.

PSA Peugeot Citroen has tied up with Harbin Hafei Automobile Industry Group Co to form its second Chinese joint venture, part of the French car maker’s plan to boost sales in emerging markets as it tries to revive its fortunes globally.

A total investment of two billion yuan (US$266 million) has been pumped into the equally-owned Shenzhen-based joint venture which will be mainly responsible for making vans, according to an e-mailed reply from Peugeot Citroen China yesterday.

“The official contract will be signed as early as the year end and the first model is expected to hit the market next year,” Europe’s second-largest car maker said in the statement.

The two partners signed a memorandum of understanding earlier this year in June.

The car maker has a cooperation deal with Dongfeng Motor Co Ltd, China’s third-largest car maker, to produce passenger cars.

Sales totaled around 210,000 units in China last year, including the best selling Peugeot 307 and C-Triomphe sedans.

The new joint venture with Hafei is crucial to help Peugeot achieve a sales target of one million units in China by 2015 and with a five-to-six percent market share, according to Denis Duchesne, president of PSA China.

It’s the first time Peugeot has drawn up an ambitious plan for the Chinese market since Duchesne took up his post in June this year.

The Paris-based car maker plans to double the production capacity of its plant in Wuhan City, central China’s Hubei Province, to 400,000 by 2009, which would further expand to 600,000 by 2012.

A third plant is also envisioned with Dongfeng Motor and will be built later to meet the growing market demand in China.

The French car maker also plans to develop 12 new models in China by 2010 to widen its product lineup to attract first time buyers.

Its aggressive plan in the Chinese market follows its worldwide restructuring to improve profitability especially in emerging markets, including China, Russia and South America.

It earlier announced plans to cut costs, including slashing up to 8,000 jobs in Europe, or 12 percent of its European work force, to improve efficiency.

It also intends to cut by 50 percent the cost of guarantee claims, streamlining purchasing, reducing logistic costs and improving capacity utilization.
 

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Peugeot agrees on second JV

2007/09/13


"PSA Peugeot Citroen has tied up with Harbin Hafei Automobile Industry Group Co to form its second Chinese joint venture, part of the French car maker’s plans to boost sales in emerging markets during its worldwide revival. The new equally owned joint venture, located in Shenzhen, involves a total investment of two billion yuan (US$266 million) and is mainly responsible for making vans, according to an e-mail from Peugeot Citroen China today.

"The official contract will be signed at earliest by the end of the year and the first model is expected to hit the market next year,’’ Europe’s second largest car maker said in the statement. The car maker sold nearly 210,000 units in China last year including the best selling Peugeot 307 and C-triomphe sedans, which it makes with local partner Dongfeng Motor Co Ltd.

Peugeot targets sales of one million units in China by 2015 with five to six percent of the country’s market share, according to Denis Duchesne, president of PSA China. This is the first time for Peugeot to unveil ambitious plan for the Chinese market since Duchesne took his new position in June this year after a handful of overseas car makers have already positioned themselves in the world’s second largest auto market, earning hefty profits.

The car maker plans to double production capacity at its manufacturing facility in Wuhan, central China, to 400,000 units by 2009, which would further expand to 600,000 by 2012. A third plant is also in the plans with Dongfeng Motor to be built later to meet the growing market demand in China.

It also plans to develop 12 new models in China by 2010 in order to expand product portfolio to attract first time buyers. The aggressive plans for the Chinese market follow its worldwide restructuring plan to improve profitability especially in emerging markets including China, Russia and South America."


- Shanghai Daily -
 

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From Global Auto Sourcing:

Separately, PSA signed a MOU with China’s Hafei Auto Group on June 29 this year. Under the MOU agreement, both sides agreed to start a 50:50 joint venture automaker in Shenzhen next year, where commercial vehicles and minivans will be produced, Streiff said.
 

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PSA's plan to cooperate with Hafei Group has been scrapped!

Chinese media is reporting that PSA Peugeot Citroen's plan to cooperate with Hafei Group has been scrapped; however its Chinese partner Dongfeng Auto Group is in talks with Hafei Group. Dongfeng offers 2 billion yuan ($270.54 million) to take over at least 50 percent stakes of Hafei Group.

The French carmaker currently assembles cars in the central city of Wuhan with Dongfeng Motor Corp, China's No. 3 auto group. However, it is still lagging behind its rivals in sales. Foreign auto giants, such as General Motors and Ford each operate a commercial vehicle as well as a car joint venture in China.

PSA Peugeot Citroen originally planed to make commercial vehicles through partnership with Hafei Group but then failed.

State-owned Hafei, based in northeast China, makes mini-cars, mini-vans, sedans and multi-purpose vehicles. The firm, capable of producing 400,000 vehicles and 450,000 engines per year, sold 231,821 vehicles in 2006.
 

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PSA, Hafei tie-up talks end up in failure.

January 30, 2008 – French automaker PSA and Chinese automaker Hafei Group’s cooperation negotiation has ended up in a failure, Chinese media 21st Century Business New reported today.

Major opposition for the possible tie-up between PSA and Hafei comes from PSA’s Chinese partnership Dongfeng Group, which is also seeking a partnership with Hafei Group, the report said.

Dongfeng Group believes instead of seeking another partnership, PSA should focus exclusively on its current joint venture with Dongfeng Group. “PSA should do a better job at Dongfeng PSA before it moves to take on another partnership,” a Dongfeng Group official said.

"It is possible that our partnership project with Hafei Group may be scrapped,” said Wang Lenian, spokesperson of PSA China. “After all, our success in China hinges on its cooperation with Dongfeng Group.

Last year, Dongfeng PSA sold 207,255 vehicles in Chinese market, up 3 percent from one year earlier. Not only is this growth rate much lower than a projected growth rate of 30 percent, but also much lower than the industry’s average growth rate of 22 percent.

PSA Peugeot Citroen and Hafei Group signed a memorandum of understanding in July that the two parties will create a 50-50 joint venture to manufacture and sell vans with ten seats or less in Shenzhen.

Denis Duchesne, CEO of the French carmaker's China operations, said the vans would be made under the Peugeot, Citroen and Hafei badges with an initial capacity of 100,000 units a year. Currently Hafei's production base in Shenzhen already has a production capacity of 100,000 units. The tie-up with Hafei is part of PSA Peugeot Citroen's latest efforts to boost its China sales to 600,000 vehicles in 2010 from 200,000 units last year, Duchesne said.

The French carmaker currently assembles cars in the central city of Wuhan with Dongfeng Motor Corp, China's No. 3 auto group. However, it is still lagging behind its rivals in terms of China sales. General Motors, Volkswagen, Toyota and Honda all run two vehicle ventures in the country with local partners.
source: Gasgoo.com
 

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PSA seeks three-way partnership with Chinese automakers.

February 20, 2008 - French automaker PSA Peugeot Citroen is seeking to set up a three-way joint venture with Chinese partners, Chinese newspaper Guangzhou Daily reported today.

Sources familiar with the issue said PSA will not give up its plan to set up another joint venture in China despite its unsuccessful attempt to tie-up with Hafei Group.

PSA Peugeot Citroen officials said Christian Streiff, CEO of PSA, will come to China to discuss a possible three-way tie-up with Dongfeng Motor and Hafei Auto, according to the Guangzhou Daily report.

PSA China and Hafei signed a memorandum of understanding to form a 50/50 JV in Shenzhen last June, but the partnership met opposition from PSA’s another partner Dongfeng Auto Group, which are trying to form a partnership with Hafei on its own.

Dongfeng Motor is doing due diligence on Hafei and Dongan Auto Engine, but it could take 2-3 months to finalize any dea, according to a Reuters report last month.

The spokesman for PSA China declined to comment on the possible three-way alliance.
source: Gasgoo.com
 

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PSA ties up with China's Hafei Motor via Dongfeng

May 29, 2008 - Sources from Dongfeng Motor said that the partnership between Peugeot Citroen and Hafei Motor has come in a new direction. PSA and Hafei will build with PSA's current partner Dongfeng a joint venture in southern Chinese city of Shenzhen (near Hong Kong) for producing small cars such Peugeot 107 and Citroen CI. Of this three-party joint venture, PSA has 40% stake , Hafei 40% and Dongfeng 20%.

In June 2007, PSA Peugeot-Citroen and Chinese carmaker Hafei signed a memorandum of understanding to start a feasibility study of a 50-50 joint venture for making a range of small cars at Hafei's plant in Shenzhen for the Chinese market. But PSA Peugeot-Citroën currently operates in China through another joint-venture (Dongfeng Peugeot Citroen Auto) with Dongfeng Motor, the third largest carmaker in China, the Chinese government has required the French automaker to partner with Hafei through the big partner Dongfeng Motor, just like U.S. automaker GM partners with Wuling via SAIC.

Le Wannian, corporate communications manager of PSA China, confirmed on earlier this week that the joint venture proceeding between PSA and Hafei Motor would be postponed due to the intervention of Dongfeng Motor. Although the cooperative memo was signed by the two parties nearly one year ago, the new partnership has to go through the review and approval of China's auto industry regulators, a byzantine process which will take a long time.

Hafei Motor, a subsidiary of Harbin Aircraft Manufacturing Corporation, is a leading minivan maker and a national small motor vehicles source in China. As reported, Dongfeng intended to purchase Hafei by the end of 2007 and then took part in the joint venture negotiation between PSA and Hafei.
source: Gasgoo.com
 

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Discussion Starter · #11 ·
martin_krpan said:
PSA, Hafei tie-up talks end up in failure.






this is going back and forth, its getting very tiring

updated development
PSA and Hafei: JV proceeding postponed
May. 27, 2008 (China Knowledge) - Le Wannian, corporate communications manager of Peugot Société Anonyme (PSA) China, confirmed on Ma. 25 that the joint venture proceeding between PSA and Harbin Hafei Automobile Industry Group Co Ltd would be postponed, due to the intervention of Dongfeng Automobile Co<600006>. Although the cooperative memorandum, signed by the two parties nearly one year a
 

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PSA CEO says company still considering JV with Hafei

February 25, 2009 - PSA Peugeot-Citroen's CEO, Christian Streiff, said yesterday in Beijing that his company is still in talks with Chinese carmaker Hafei Auto's parent AVIC (China Aviation Industry Corp) for another PSA auto venture in the country, reported 21st Century Business Herald today.

During his stay in Beijing before flying to Wuhan city, headquarters of Dongfeng Peugeot-Citroen Automobile Co., for this year's management meeting, Streiff told the newspaper that China remains to be the strategic center of PSA Peugeot-Citroen's global development, his company will keep the harmonious cooperation with Dongfeng Motor Group and will support their joint venture for its sustained growth.

When asked whether to resume the halted talks for tie-up with Hafei Auto, the PSA boss replied: "We're still working with AVIC's friends on possible cooperation [with its subsidiary Hafei Auto]. This project should be a supplement, not a rival, to the Dongfeng Peugeot-Citroen venture." The French carmaker has been trying to establish another joint venture in China for the local market.

"In Recent months, the auto industry's environments in China and other parts of the world have changed tremendously and we will adjust our projects to the changes," Streiff said, adding that his company will continue to cut costs under CAP 2010, PSA's ongoing reconstruction plan, with the cost-cuts goal likely to be reached this year.

In May 2008, it was reported that PSA and Hafei would build with PSA's current Chinese partner Dongfeng a three-party venture in southern Chinese city of Shenzhen for making small cars such Peugeot 107 and Citroen CI. In June 2007, PSA and Hafei signed a memo of understanding to start a feasibility study of a 50-50 joint venture.
source: Gasgoo.com
 

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Parent AVI China is dragging its feet on this tie-up. It's under a lot of pressure by the Heilongjiang powers that be, to keep production up in that northern province. The other AVI entity, engine maker Dong'an, is in Harbin and they don't want Hafei operations moving down to Shenzhen.
 

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Hello,

I am french and was working in Project between PSA and DONG FENG in 2007-2008. I was very happy regarding this project and experience in China. I am looking forward to a new work with PSA-Chinese Client.

Do anybody know if there are some french or german company which are looking for european person?

thanks for your reply
Best Regards
Frédéric
 
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