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PSA to Produce 3 More Cars in China
Release Time: 2008/8/28 0:00:00        From: Made In China.com        Visits: 280458        Font Size: Large  Middle  Small

 

Aug. 28, 2008  From http://english.autoinfo.gov.cn

PSA Peugeot Citroen Automobile Co. will attack market leader Volkswagen AG by producing in China three mid-sized cars, the Peugeot 407 and the Citroen C5, supplier sources say.
    
    PSA now only markets in China one domestically made mid-sized car, the C-Triomphe. The 407, 408 and C5 are imported to China. Producing in China typically lowers production costs and avoids import taxes.
    
    First six month sales of the VW Passat, the mid-sized market leader, rose 15 percent over last year to 69,230 units, according to Automotive Resources Asia, a division of J.D. Power and Associates.
    
    In April, Jean-Louis Chamla, Citroen’s vice president in charge of international sales and marketing, told Automotive News China: "Citroen will focus on developing mid-sized cars in China in the coming few years."
    
    The Citroen C5 sedan will be launched in China in 2009, says PSA. The car will be built at a new factory under development with Dongfeng Peugeot Citroen. The sedan will compete with the Passat.
    
    The Peugeot 407 is also expected to begin production here in 2009, according to supplier sources. The C5 and the 407 share a platform. Peugeot Citroen’s spokesperson in China declined to comment on the Peugeot 407.
    
    The Peugeot 408 is expected to start production in January 2011, with the new generation C5 following in mid 2012, say industry forecasters.
    
    Dongfeng Peugeot Citroen Automobile Co. is expected to use aluminum engine blocks for new vehicles using PSA’s 1.8- to 2.2-liter EW12 en gines. These engines are used for the C5, the 407 and 408 vehicles. Demand for better fuel economy is creating demand for lighter engines.
    
    An industry analyst says that Dongfeng Peugeot Citroen will probably produce the C5, the 407 and 408, as they share the same platform.
    
    Suppliers say they have received requests for quotations and are preparing for production.

(Editor: Irene Lu)

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