China's Changan confirms Peugeot tie-up talks: report
Chinese car maker Changan confirmed Friday it was in talks with PSA Peugeot Citroen of France on forming a new joint venture in China, a report said.
The firms are negotiating to set up a 50-50 commercial vehicle joint venture, Dow Jones Newswires quoted Du Yi, a vice president of Changan, as saying.
An agreement is expected in one to two months, Du said on the sidelines of the Beijing Auto Show, which opened to the media on Friday, according to the report.
The new partnership will initially build cars in the southern Chinese city of Shenzhen, Du said. No further details were given and officials at Changan were not immediately available to comment when contacted by AFP.
Previous Chinese reports said the joint venture would make small cars and commercial vehicles under the Peugeot and Citroen brand names.
Peugeot already has a joint venture with Dongfeng Motor Group, but intends to increase its presence in the world's number one auto market.
It announced in January that it aimed to increase sales in China by 30 percent this year, double the growth rate for the country's whole market.
© 2010 AFP