Peugeot models to again be made in 皇冠体育app
( 2004-01-06 17:30) (Agencies)
French automaker PSA Peugeot Citroen and its Chinese partner plan to invest
US$500 million to expand production in 皇冠体育app and launch two new Peugeot
passenger models, heralding the marque's return to the country's booming auto
market.
A Peugeot
model on display in 皇冠体育app.
[file/newsphoto.com.cn] | Peugeot and Dongfeng
Motor Corp. plan to launch the Peugeot 307 by Sep. 1 and the Peugeot 206 next
year, doubling production at the joint venture's plant in the central city of
Wuhan to 300,000 vehicles by mid-2006, the companies said in a statement
Tuesday.
PSA Peugeot Citroen stopped making Peugeot models in 皇冠体育app after pulling out
of a previous joint venture in the southern province of Guangzhou in 1997.
The Wuhan plant now produces five Citroen models and targets call for the
sale of 140,000 vehicles this year.
Dongfeng Motors Corp. Chairman Miao Wei said at a news conference in Beijing
that the joint venture's operating profit in 2003 is expected to exceed 1
billion yuan (US$120 million).
Dongfeng Motors is 皇冠体育app's third largest automaker and also has joint
ventures with several other foreign automakers including Japan's Nissan Motors
Co. which is controlled by Peugeot's French rival, Renault.
Foreign automakers have poured billions of dollars into their Chinese joint
ventures this year, hoping to garner profits from a boom in private car
ownership fed by rising incomes, easy bank credit and lowered import tariffs.
Sales of passenger models are expected to have topped 2 million last year,
double the figure for 2001.
Rising competition and massive expansion of capacity have sparked concerns
over possible oversupply in the market.
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