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Groupe PSA and ChangAn Automobile Reinforce Their Cooperation to Strengthen CAPSA JV Operation

UGE

Groupe PSA and ChangAn Automobile Reinforce Their Cooperation to Strengthen CAPSA JV Operation

  • Boost DS brand development in China and Asia Pacific with one launch per year from 2018
  • Enhance joint developments and manufacturing of products and technologies, with New Energy Vehicles to be considered by both partners

Regulatory News:

On June 7th ChangAn Motor and Groupe PSA (Paris:UG) signed an in-depth strategic cooperation agreement to further deepen their cooperation started 6 years ago to establish DS premium brand in China.

Boost DS brand in China and Asia Pacific

CAPSA will benefit from the DS ambitious product planning which will consist in launching one new DS product to the Chinese market each year from 2018 onwards. In addition, state of the art technologies will be available for DS product range including PHEV1 and a first BEV2, expected to be launched in 2019.

Groupe PSA will set-up in Shenzhen its DS brand Headquarter for China, Asia Pacific in order to develop synergies on a daily basis with CAPSA in the management of operations in China and to develop exports in the region.

Strengthen CAPSA operations and explore further cooperation

Both partners have decided to enhance global production at Shenzhen plant to leverage its excellent quality and raise the utilization rate beyond DS line-up, and will execute the alignment between Presidents to have on the short term more SUV and Sedan vehicles produced in Shenzhen plant.

The agreement will also enable both parent companies to strengthen cooperation on joint development of vehicle platform, new energy vehicles, traditional powertrains, intelligent connectivity, overseas operations. Both partners will execute the decision concerning LCV3 cooperation, with a “pick-up” in the short term.

Shared investment between CAPSA shareholders

This ambitious development Plan of CAPSA will be supported by a strong equally shared investment in equity of both ChangAn and Groupe PSA amounting to 3.6 BRMB (€ 500 m) over 2017.

“This agreement will give a new impetus to the DS brand in China and in Asia pacific and is a clear demonstration of the willingness to strengthen cooperation between the two companies in a constructive spirit” said Mr. Denis Martin, EVP China and ASEAN region of Groupe PSA.

Mr. Wang Kun, the vice president of ChangAn Automobile commented: “ChangAn Automobile will work together with Groupe PSA to strengthen the resource investment to CAPSA, unswervingly develop DS as a premium brand, speed up the product launch and set the position of CAPSA as the center of DS in Asia Pacific.”

About Groupe PSA

With sales and revenue of €54 billion in 2016, the Groupe PSA designs unique automotive experiences and delivers mobility solutions that provide freedom and enjoyment to customers around the world. The Group has three car brands, Peugeot, Citroën and DS, as well as a wide array of mobility and smart services under its Free2Move brand, to meet the evolving needs and expectations of automobile users. The automobile manufacturer PSA is the European leader in terms of CO 2 emissions, with average emissions of 102.4 grams per kilometre in 2016, and an early innovator in the field of autonomous and connected cars, with 2.3 million such vehicles worldwide. It is also involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia . Find out more at groupe-psa.com/en .

Media library: https://medialibrary.groupe-psa.com/ / Twitter: @GroupePSA

1 Plug-in Hybrid Electric Vehicle
2 Battery Electric Vehicle
3 Light Commercial Vehicles

Groupe PSA
Media contact: (+33) 1 40 66 42 00
psa-presse@mpsa.com

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