Manufacturing News

PSA still struggling despite rebound in sales at Dongfeng joint venture

PSA Peugeot Citroen operated significantly below production capacity in China in the first six months despite a small rise in sales at its joint venture with Dongfeng Motor Group.

June sales at Dongfeng Peugeot Citroen Automobile, a 50-50 partnership between Dongfeng and PSA, increased 4 percent year on year to 22,160, according to Dongfeng.

First-half deliveries at the joint venture rose 6.7 percent from a year earlier to 157,749.

Dongfeng Peugeot Citroen, based in the central China city of Wuhan, operates four assembly plants in China which combined production capacity of up to 840,000 vehicles a year.

PSA also has a 50-50 joint venture with Changan Automobile Co., which assembles Citroen DS vehicles in the south China city of Shenzhen.

Sales at Changan PSA, which can produce up to 200,000 vehicles annually, have thinned to a trickle over the past few years.

Neither Changan nor PSA disclosed the joint venture’s sales. But according to the China Passenger Car Alliance, a Shanghai-based consultancy, Changan PSA’s sales remain woefully low: only 325 deliveries in June and sales of 2,022 in the first six months.

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