PSA shelves plan to make small car in China in 2012
Because of economic difficulties in and outside China, PSA Peugeot Citroen SA has postponed development and production of a new small car in China.
Because of economic difficulties in and outside China, PSA Peugeot Citroen SA has postponed development and production of a new small car here, supplier sources say.
Two sources at Tier 1 global supplier companies said they had previously received requests for quotations (RFQs) and requests for information (RFIs) for producing a car called the A5. Now, however, the project has been put on hold, the suppliers say.
The original intention was for PSA to start building the A5 car in 2012 in Wuhan, Hubei province. The car was intended for domestic sale as well as export, the supplier sources say.
Through its joint venture with Dongfeng Motor Co., the French carmaker now runs two plants in Wuhan. The A5 small car was expected to be built at a third plant.
Local government reports say an area of land with 1.6 million square meters has been cleared for construction of a new auto plant.
Supplier sources say the A5 was to be built on a platform developed jointly by PSA and Toyota in 2004 and now used for three cars: the Peugeot 107, the Citroen C1 and the Toyota Agyo.
In Europe, the Peugeot 107 and Citroen C1 are sold as inexpensive urban cars, at prices of around 8600 euro (77,600 yuan). The Peugeot 107 carries a 1.0-liter gasoline engine while the Citroen C1 carries a 1.0-liter gasoline or a 1.4-diesel engine.
When questioned on a small car to begin production in China in 2012, Alexis Varnier, spokesperson for PSA in China said: "I've not heard about that." He also said he was not aware of PSA's plans for a third plant in China.
At present, PSA produces five Citroen models and three Peugeot models in China. They include the Citroen Elysee and C-Triomphe sedans, the C-Quatre and Xsara Picasso hatchbacks, the C2 small hatchback, the Peugeot 307 sedan and its hatchback version, and the small hatchback and sedan versions of 206 and 207.
Combined sales of these models were 178,308 units in 2008, 14 percent less than in 2007, according to JATO Dynamics.