Xu Bin, president of China South Industries Group Corporation, Changan’s main shareholder, and Philippe Varin, chairman of the PSA Peugeot Citroën Managing Board, have signed a contract to create an equally owned joint venture (JV).
The joint venture will produce and market light commercial vehicles and passenger car line-ups in China. The partners will initially focus on introducing the Citroën DS line in China and launching a dedicated new brand for the venture.The contract also allows for the joint venture to market, at a later date, further vehicles under the partners’ other brands, Peugeot and Changan.
The new company will be capitalised at CNY4bn (£465m), to be shared equally by the two partners, and backed by an initial investment of CNY8.4bn.
The first vehicle is scheduled to be launched in the second half of 2012.
The joint venture remains subject to final approval by the relevant authorities.