French automaker to produce cars with local carmaker
The establishment of an automobile joint venture in Shenzhen was recently given approval by the National Development and Reform Commission. The joint venture has a registered capital of 4 billion yuan and is co founded by French automaker PSA Peugeot and China Chang’An Automobile Group.
The project is said to cost 8.4 billion yuan and will be built in Bao’an District with two stages. The first stage is scheduled to open in 2012 and composed of production lines with combined output of 200,000 cars every year. Also an additional 500 million yuan will be spent for a research and development center to sharpen the company’s edge.
Second stage composes a production line that is capable of producing 500,000 finished automobiles every year. The company is set to develop and manufacture Citroen DS models, which is a high end model of the French carmaker. The company will also produce its MC7 sports vehicle in the production plant.
The company will also be producing their CCAG cars and their own version of G9LV multi functional and commercial vehicles. The company will be raising the technological level of the city’s automotive industry and will increase the city’s annual production capacity to more than 600,000 passenger vehicles. The joint venture will also produce environmentally friendly engines.