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Beijing 18th February 2014
The Dongfeng Motor Group, Inc, The French Government, the
Peugeot family holding company and PSA Peugeot Citroën 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 Citroën
automobile company with both parent companies being committed to
accelerating development.
Thanks to production synergies, Dongfeng Peugeot Citroën 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 Citroën group, owns two world famous major car brands,
Peugeot and Citroën and sold 2.8 million vehicles worldwide in 2013
with sales outside Europe accounting for 42%. As Europe's
second-biggest carmaker, PSA Peugeot Citroën 2013 has a turnover
of 54 billion euros. The PSA Peugeot Citroën Group operates in
160 countries around the world.
[Translated from the
Dongfeng announcement]
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