Gasgoo.com (Shanghai July 2) - Chongqing-based Changan Automobile and French manufacturer PSA Peugeot Citroën officially announced that their upcoming Changan PSA joint venture will begin manufacturing vehicles in Shenzhen, Guangdong next year, the Securities Daily reported today.
Both Changan and PSA will own half of the Changan PSA joint venture. Registration capital for the JV is four billion yuan ($ 636.18m). Its preliminary investments will total around 8.4 billion yuan ($ 1.34b), making it one of China’s most expensive JVs. It is expected to boast an annual production capacity of 200,000 vehicles and engines by 2015.
In order to comply with new government legislation, the JV will also construct a new research and development center and establish an own brand product line. According to Vice President Cai Jianjun, work on the R&D center has already begun. It is predicted to be usable in two years. Among its responsibilities, it will aid in the development of new energy vehicles.
Both parties also confirmed that the entire luxury Citroën DS line will be available in the country by the end of this year. However, it might take until after 2015 for a Changan PSA own brand to come into existence.