11/29/2019

PSA Confirms Sale of Stake in Changan Venture

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PSA Group confirms it is selling its 50% stake in a carmaking venture with China’s Changan Automobile Group.

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PSA Group confirms it is selling its 50% stake in a carmaking venture with China’s Changan Automobile Group.

The 8-year-old partnership, called Changan PSA Automobiles Co. (CAPSA), makes models for PSA’s upscale DS brand. But Automotive News Europe says the marque retailed fewer than 4,000 such vehicles in China last year against CAPSA’s capacity to build 200,000 vehicles annually.

PSA also intends to stop using two of the four auto plants it shares in a separate venture with Dongfeng Group, according to Reuters. That alliance makes mass market Citroen and Peugeot cars.

PSA had expected to be selling at least 1 million cars per year in China by now. But Reuters says the company’s overall sales in the country in 2018 totaled fewer than 263,000 units.