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PSA, Dongfeng Plan to Start Production in Vietnam, Report Says

22 Mai 2015 - Automotive News

PSA, Dongfeng Plan to Start Production in Vietnam, Report Says

PSA/Peugeot-Citroen and its Chinese joint venture partner Dongfeng Motor will open an assembly plant in Vietnam as part of plans to expand in Southeast Asia, China's Xinhua news agency reported on Wednesday.

Dongfeng PeugeoutCitroen Automobile plans to begin assembling in Vietnam later this year in partnership with THACO Group, according to Xinhua, the official state news agency.

The joint venture has already begun production of compact cars in Malaysia in cooperation with local firm Naza Group, Xinhua also said.

Last year, PSA and Dongfeng agreed on a 3 billion euro ($3.34 billion) capital tie-up, giving the French carmaker much needed funding to turn its business around.

The automakers agreed that their China JV would aim to sell 1.5 million vehicles a year starting in 2020, as well as consider setting up a new company responsible for sales in the Asia-Pacific region, especially in Southeast Asia.

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