| Last updated at: (Beijing Time) Friday, November 16, 2001 |
PSA Peugeot Citroen, Dong Feng Motors Expand Cooperation |
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Jean-Martin Folz, CEO of the PSA Peugeot Citroen Group, and Miao Wei, president of Dong Feng Motors, signed an agreement Thursday in Beijing to make and sell substantially more Citroen and Peugeot vehicles.
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Jean-Martin Folz, CEO of the PSA Peugeot Citroen Group, and Miao Wei, president of Dong Feng Motors, signed an agreement Thursday in Beijing to make and sell substantially more Citroen and Peugeot vehicles.
Under the agreement, PSA Peugeot Citroen's new production line will be installed in the China's central Wuhan plant, while production of the new gasoline engines will be launched at the China's central Xiang Fan plant.
Folz said that from next year at least one new model of Citroen and Peugeot automobiles will be introduced in China annually. As a result, the product lineup in Wuhan will include six cars in 2004.
Three joint ventures will support the new phase of cooperation: a manufacturing joint venture, comprising the Wuhan and Xiang Fan plants; and two marketing joint ventures, one in charge of selling Citroen vehicles and the other responsible for selling Peugeot cars.
Miao said the two sides have decided to increase investment into the manufacturing joint venture by one billion yuan. PSA Peugeot Citroen will contribute 630 million yuan and Dong Feng Motors 370 million yuan.
Folz said that China has a huge potential car market, and China's WTO entry and preparation for the Olympics will provide more opportunities for the development of PSA Peugeot Citroen.
The two companies began cooperation in 1992 and have been successful in their endeavors. Their joint venture has become a famous car manufacturer in China.
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