Reuters has reported that Chinese automaker Dongfeng and the French government will be taking equity stakes in PSA/Peugeot-Citroen after injecting $4.1 billion into PSA. Under the draft agreement, which is still being negotiated, Dongfeng Motor and the French government will each put 1.5 billion euros into the French automaker, with each of those parties getting a 20 to 30 percent share in the company.
PSA/Peugeot-Citroen is negotiating with China’s Dongfeng Motor to expand their partnership in the world’s largest car market. PSA CEO Philippe Varin told reporters attending the opening of a new factory in Shenzhen, China, on Saturday that the French company is seriously considering selling equity to Dongfeng to fund expansion outside of Europe. The sale could diminish the holdings of the Peugeot family, which holds slightly more than a quarter of PSA shares, below a controlling stake in the French automaker. Earlier this year, Reuters had reported that the Peugeots were willing to relinquish control so that GM could take a larger stake in PSA, though General Motors has since indicated that they don’t plan to increase their holdings in PSA. (Read More…)
PSA, parent company of Peugeot and Citroen, is said to be exploring a partnership with China’s Dongfeng, as Peugeot looks for ways to strengthen itself amid weak sales and a perpetually sputtering European car market.
Renault hopes to get going on its foray into China, and to sign a joint venture agreement with Dongfeng, Reuters says. “We are waiting for an official invitation from the Chinese industry ministry,” Reuters heard from an insider. Rumors of an impending JV kept Chinese media guessing and speculating for years. (Read More…)
Fisker is still likely to be rescued by a Chinese savior, but it won’t be Geely. Reuters is reporting that Fisker’s outstanding obligations to the Department of Energy have scared off the Chinese auto maker, leaving Dongfeng as the sole suitor for the beleagured EV maker.
Max Warburton and his team. Warburton, of Bernstein Research, assembled a team to interview over 40 auto executives in China (both Chinese and foreign-born) and even bought two Chinese vehicles from Geely and Great Wall. Warburton had them shipped to Europe, where they were taken to a test track, driven extensively and then taken apart by engineers and automotive consultants. And it was far from pretty.
Not Dongfeng, but China’s Geely currently looks best positioned to profit from U.S. government largesse by buying beleaguered and DOE-funded plug-in car maker Fisker, Reuters reports. According to the report, “Zhejiang Geely Holding Group is favored to secure a majority stake in troubled U.S. electric car maker Fisker Automotive, according to two sources familiar with Fisker’s search for a strategic investor or partner.”
Also according to the report, red flags are sure to flutter over Fisker’s HQ in Anaheim, as Fisker “is currently weighing bids from two Chinese auto makers: Geely, the owner of Sweden’s Volvo, and state-owned Dongfeng Motor Group Co.”
Reports by Bloomberg suggest that Fisker could sell up to an 85 percent stake to Chinese automaker Dongfeng. The automaker apparently bid $350 million for the beleaguered plug-in car maker, according to sources close to the company.
China Business News has the story (via Reuters) that Renault will start a joint venture with Dongfeng, and that “the two firms plan to invest a combined 6.5 billion yuan ($1.0 billion) in a plant in the central province of Hubei with an initial capacity of 200,000 cars a year.” The story promptly went as viral as a story about a Chinese joint venture can go viral.
Officially, the story elicited a “no comment”at Renault. Privately, after they were done yawning, contacts in Paris said that this is a non-story, but a popular one. News about a joint venture between Renault and Dongfeng appear with regularity, but they overlook the fact that Renault has had a joint venture in China for longer than most people seem to remember. (Read More…)
A company owned by China’s central government is taking it on the chin as Chinese customers avoid Japan branded cars. Dongfeng reduced production at its joint ventures with Nissan and Honda, the Wall Street Journal reports today. Amount or duration of what the company calls “production adjustments” is unknown. (Read More…)
A (hecho en Mexico) Cadillac SRX costs between $67,700 and $91,000 once it’s sold in China. It doubles its price compared to the U.S. because of a monster tariff in China. Soon, there will be a more affordable version. A much, much, much more affordable version. Except that it won’t be from GM. (Read More…)
Christmas is over so we go back to war. This is the newest kill-machine of the Chinese army. It is a 4×4 armored vehicle based on the Dongfeng EQ2050 (thank you America!). The new car seems designed as a hit-and-run fast attack vehicle with a big turret on the roof for a big fat machine gun or rocket-propelled grenade launcher. (Read More…)
Fuelled by Nissan’s decision to move the HQ of it’s Infiniti brand to Hong Kong, rumors of an impending Chinese production of the upscale marque would not end. In November, while not denying the story out of hand, spokespeople in Yokohama indicated that announcements of Chinese production of Nissan’s luxury brand were premature. Today, China Daily has an interesting twist on the story: A trucks-for-luxury cars swap. (Read More…)
We have been following this phenomenon for a while. Joint ventures in China create faux Chinese brands. Because? Because it’s the right thing to do, at least as far as the Chinese government is concerned. Officially, the reason for those fake Chinese brands is to make cars more affordable. Off the record, automakers roll their (slanted and round) eyes at this reasoning. A new brand doesn’t miraculously make a car more affordable. In the contrary. To establish a brand costs money. To establish dealer networks costs money. To build new cars costs money, even if they are on passé platforms. But you’ve got to do what China’s bureaucrats think you’ve got to do. Possibly, all these joint venture brands, from GM’s BaoJun on out, will end up in nice statistics that prove that homegrown Chinese brands are selling, and that exports are up.
Why the rant? Nissan and Dongfeng show the first production model of the faux Chinese Venucia brand at the Guangzhou auto show. (Read More…)
China’s Dongfeng makes a lot of cars with several joint ventures. It also makes its own cars. In a way. It’s ode to the Hummer is legend. Now, Dongfeng found inspiration in another legend: The Unimog. At a show in Shanghai, Carnewschina found the Dongfeng v-Tiger, or EQ2070FQJ, which it says is a spitting image of Daimler’s inconic Unimog workhorse. Well, that’s up to debate. One thing isn’t: (Read More…)