PSA Peugeot Citroën and its Chinese partner Dongfeng Motor Group plan to invest 200 million euro (US$216 million) to develop a common platform for their next generation of small and mid-size cars, the Wall Street Journal reported.
At a news conference Sunday ahead of the Shanghai auto expo, officials were quoted as saying that the new platform will allow the two companies to share common parts during production.
Vehicles produced under the new platform are expected to hit the market in 2019.
Peugeot, Europe’s second-largest car firm, was quoted as saying that the common architecture will allow it to tap into Dongfeng’s supplier base, which in turn will “make it possible to meet ambitious cost targets””
The investment, of which 60 percent will come from Peugeot, will also go toward a new joint research and development center.
“It has been exciting and rewarding,” Peugeot Chief Executive Carlos Tavares was quoted as saying, referring to his firm’s first year of the partnership with Dongfeng.
He said the new platform will be flexible and could create as many models as needed, but is targeted at the smaller-car segment, which he said is where the bulk of the market is.
Dongfeng and Peugeot have set a goal of reaching 5 percent market share in China by the end of this year for their joint venture.
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