Home CitroŽnŽt home
Site search powered by FreeFind Do NOT include 'Citroen' in your search terms

Peugeot family loses control of PSA Peugeot CitroŽn.  Dongfeng and French government become shareholders

Beijing 18th February 2014

The Dongfeng Motor Group, Inc, The French Government, the Peugeot family holding company and PSA Peugeot CitroŽn signed a memorandum of understanding under which the Dongfeng Motor Group and the French Government will inject about €800 million capital in PSA, and the Peugeot family-owned holding company will participate in the capital increase. 

Upon completion of this transaction, Dongfeng, the French Government and the Peugeot family holding company will become major shareholders in PSA, each owning 14%.

The signing of the framework agreement will also strengthen cooperation in the fields of industrial and commercial operations.  There will be a future increase in the fields of technological research and development, procurement, manufacturing, and marketing cooperation which will improve development efficiency and levels of strategic alignment and further enhance the international competitiveness of Dongfeng and PSA.

The signing of the memorandum of understanding and the framework agreement, marks the first time a Chinese auto company has taken a strategic stake in a world famous car company.

Dongfeng and PSA become strategic partners and shareholders in the areas of strategic alliances, technology research and development, procurement, manufacturing, and marketing.

China is the world's largest and fastest growing car market.

Based on the consensus reached, Dongfeng and PSA will further deepen cooperation on a global scale. Cooperation plans include a Research Centre in China committed to car technologies, and joint development products, both for Dongfeng and PSA.  The Chinese car company provides research services and is an established overseas sales company where it is responsible for PSA sales and service business products in Asia - particularly ASEAN.

Dongfeng and PSA’s deeper cooperation further complement each other, and will further enhance the competitiveness of both companies in the global automotive market and will permit Dongfeng to take advantage of PSA’s passenger car technology thereby allowing it to compete in international markets.

At the same time, through a deepening of strategic cooperation, this will strengthen the synergy between the two sides and  contribute to the optimisation of the PSA range.

The further deepening of the strategic partnership will also have a profound impact on the development of the Dongfeng Peugeot CitroŽn automobile company with both parent companies being committed to accelerating development.

Thanks to production synergies, Dongfeng Peugeot CitroŽn automobile company plans to produce and sell 1.5 million units in 2020 in Asia and other emerging markets.

Dongfeng’s parent company, Dongfeng Motor Corporation was founded in 1969 and is the backbone of China's large State-owned enterprises with its headquarters in Wuhan with plants located in Shiyan, Xiangfan, Wuhan, Guangzhou and other places.  Its main business covers the full range of commercial vehicles, passenger cars, parts and automotive equipment.

In 2013 Dongfeng sold 3.535 million vehicles with a sales income of 453.36 billion yuan. The company ranked 146th in the Fortune Global 500 in 2013. In 2013 it was18th in the top 500 enterprises in China and was in 4th place in the Chinese top 500 manufacturing enterprises.  In 2013, 1.271 million Dongfeng brand vehicles were sold-  an increase of 13.4% growth compared with the industry average of 3.2%. Own-brand passenger cars sales were 655,600 – an increase of 27.3% - 2.4 times the industry average.

The company has ranked first for 10 consecutive years in the heavy commercial vehicles sector.

The Dongfeng Automobile Company has a strong influence and brand appeal and is the most well known trademark of the Chinese automotive industry.

PSA Peugeot CitroŽn group, owns two world famous major car brands, Peugeot and CitroŽn and sold 2.8 million vehicles worldwide in 2013 with sales outside Europe accounting for 42%. As Europe's second-biggest carmaker, PSA Peugeot CitroŽn  2013 has a turnover of 54 billion euros. The PSA Peugeot CitroŽn  Group operates in 160 countries around the world.

[Translated from the Dongfeng announcement]

© 2014 CitroŽnŽt