PSA Peugeot Citroen in new MPV joint venture in China

PSA Peugeot Citroen and Chinese carmaker Hafei have signed a memorandum of understanding to start a feasibility study of a 50-50 joint venture that will manufacture small people movers of under 10 passengers capacity for the Chinese market.

The vehicles will be produced by Hafei’s plant in Shenzhen.

The signing of the MOU demonstrates the Group’s commitment to speeding up its development in China, one of its three international strategic growth regions.

Hafei is a Chinese carmaker and a subsidiary of the AVIC aeronautics company. Its production reached 260,000 cars in 2006.

PSA Peugeot Citroen already operates in China through Dongfeng Peugeot Citroen Automobiles (DPCA), a 50-50 marketing and manufacturing joint venture established in partnership with Dongfeng Motor.

DPCA sold 201,300 vehicles in 2006 and 87,100 vehicles in the first five months of 2007.