Dongfeng Peugeot Citroën

History

PSA Peugeot Citroën was an early entrant in the Chinese auto market. In 1983 and 1984, the Citroën division competed against Volkswagen for the 'large car' contract in the nascent Chinese auto market - the complicated Citroën CX competed with the simpler Volkswagen Santana. The winner went on to form Shanghai Volkswagen in 1984 with SAIC Motor.

In 1985, the Peugeot division established a Chinese company, Guangzhou Peugeot Automobile Company, as a joint venture with the government of Guangzhou. This company built the outdated Peugeot 504 as a pick-up and was defunct by 1997.

The Citroën division's original effort eventually resulted in a second opportunity. Responding to a request for a foreign partner from large, indigenous vehicle maker Dongfeng Motor Corporation to build smaller vehicles, Citroën planned Chinese production of the Citroën ZX. Delayed by two years due to French government resistance following the Tiananmen Square massacre, the project only came off the ground in 1992. The joint venture company was located in Wuhan and was known as Dongfeng Citroën Automobile Company (DCAC).

Established in 1992, producing from semi-complete knock-down kits, by 1996 production capacity had reached 150,000 units/year, and its second offering, the Fukang 988 sedan, was added in 1998. Its first product was a hatchback built from semi-complete knock-down kits, the ZX Fukang. The project was never very successful, due to a limited lineup and delays from the beginning.

While most current offerings are versions of cars available in other markets, some vehicles have been tailored to better suit local demand such as changing hatchbacks to three-box designs.

When the Peugeot division gave up its failed Guangzhou venture, it joined Dongfeng, creating the current Dongfeng Peugeot-Citroën Automobile (DPCA), and in 2002 DPCA introduced the company's first Peugeot-branded model.

By mid-2014, by which time DPCA was operating three car-manufacturing plants in China with a capacity of creating 750,000 vehicles a year, the group announced it was building a fourth plant, in Chengdu, in Sichuan province capable of producing 300,000 sport-utility and multipurpose vehicles a year. The factory was expected to open at the end of 2016.

Production bases and facilities

The joint venture has three production bases one in Wuhan and two in Hubei province.

In July 2014, DPCA revealed it was building a fourth factory in China, in Chengdu, Sichuan province. The new plant, scheduled to open in late 2016, was to have a capacity of producing 300,000 sport-utility and multipurpose vehicles a year.

PSA Peugeot Citroën has two facilities in Shanghai—an R&D center (China Tech Center) and a design center.

In 2013, PSA sold 557,000 cars in China. In 2014, it was targeting 750,000 sales.

Dealer network

Its dealer network boasts nearly 300 Citroën shops in over 200 Chinese cities and about 170 Peugeot showrooms (other sales and service stores that carry and cater to Peugeots do exist). Imported models are usually not carried.

Products

Citroën and Peugeot models sold in China over the years have included are listed below. Imported models are mainly sold through DPCA dealerships to complement the range of locally produced cars.

During the 2000s, the Citroën cars built and sold by DPCA were the Citroën Xsara Picasso MPV -identical to the European version-, the Citroën C-Triomphe -a top of segment sedan compact car, based on the first generation of the Citroën C4, second of the 2005 European Car of the Year- and the Citroën Fukang, a popular sedan car, based on the Citroën Xsara. The imported Citroën cars were mainly the top of range model Citroën C6, the Citroën C4 Grand Picasso MPV, and the new Citroën C4 Coupé. The Peugeot cars range built in China was the Peugeot 307 sedan and hatchback, the Peugeot 206 and Peugeot 207 sedan and hatchback. The top of range Peugeot models were imported : Peugeot 607, Peugeot 407, Peugeot 407 Coupé, Peugeot 407 SW, Peugeot 307 CC (for Coupé Cabriolet), Peugeot 308 CC, Peugeot 308 SW and Peugeot 207 CC.

During the 2010s, PSA Peugeot Citroën has increased its number of new locally produced models. 2013 and especially 2014 were the years of the ranges renewal. The Citroën car models include the 2014 Citroën C3-XR, Citroën C5, Citroën C4L -a specific C+ top of range compact sedan version of the 2010 Citroën C4 hatchback- and 2013 Citroën C-Elysée. The Peugeot models built in China are the 2014 Peugeot 2008, the specific Chinese version of the Peugeot 3008 SUV, the Peugeot 308 sedan, the 2014 Peugeot 308, the 2014 Peugeot 408, the 2014 Peugeot 508 and 2014 Peugeot 301. The Citroën imported models are mainly the Citroën C4 Grand Picasso MPV and the Citroën C4 Aircross SUV. Peugeot imported models are mainly the high-end ones like the Peugeot RCZ, Citroën C4 Grand Picasso or also the Peugeot 4008.

PSA Peugeot Citroën signed an exclusive agreement with Dongfeng to sell its imported models from 2015.

The Citroën DS5, Citroën DS 5LS and DS 6WR models are built and sold in China by Citroën DS/PSA, but these are by another joint venture, Changan PSA, established in 2010.

Ownership

Ownership of the joint venture has evolved since its establishment in 1992. In 2000, ownership was: 31%, Dongfeng Motor Corporation; 39%, Chinese banks; 26.9%, Citroën; 3.1%, international banks. In 2010 DPCA became equally owned.

In 2014, Dongfeng took a 14% stake in the PSA Peugeot Citroën parent company.

Sales figures

Sources PSA ·