France’s PSA wants a bigger slice of the growing Chinese pie. They agreed to set up a joint venture with government-owned Changan. Peugeot already has a joint venture with Changan’s rival Dongfeng, while Changan has a joint venture with Ford. Nevertheless, the new JV will “not compete directly with other partnerships,” the companies said in a statement published by Bloomberg.
As intimated before, the JV might use an idle plant in Shenzhen. It was owned by Harbin Hafei Automobile. That company was acquired by Changan last year. There are rumors that PSA might want to get into the light utility vehicle market with Changan, and use that as a jump-off point to India as well. This strategy worked very well for GM. Most of their cars sold in China are small Wuling vans.
In the meantime, Ford “is looking at options to expand its partnership with Changan beyond the terms of the current joint venture the automakers have in China,” Reuters reported.