Dongfeng Peugeot’s third factory in China begins operation
Dongfeng Peugeot Citroën’s third Chinese automobile factory has officially begun operation, China Business News reported today. The factory, which is located in Hubei’s capital of Wuhan, is designed to manufacture 300,000 automobiles annually and will bring its total production capacity in China to 750,000 vehicles. PSA Peugeot Citroën, which posted a deficit of 5.01 billion euros ($6.43b) last year, and its partner will invest a total of 6.4 billion yuan ($1.04b) in building and expanding the factory.
In order to fulfill its goal of selling 750,000 vehicles in 2015, Dongfeng Peugeot Citroën has plans to release 11 new models over the next three years.
Dongfeng Peugeot Citroën possesses two other automobile factories in China. The joint venture’s first and third factories will focus on production of economy-class and mid-level models, while its second factory will manufacture premium models. The third factory has recently begin producing the new Citroën Elysée (pictured above). It will begin manufacturing the brand new Peugeot 301 midsize (pictured below) by the end of this year and the 2008 in 2013.
Established in 1992, Dongfeng Peugeot Citroën is PSA’s first Chinese joint venture enterprise. However, it has constantly lagged behind its foreign competitors in the country. In order to catch up, the JV began bringing over a slew of new models in 2009. Its sales totaled 440,000 vehicles in 2012, up 8.8 percent from the previous year. The JV aims to sell 750,000 vehicles in 2015.