Peugeot to soon announce venture with China's Changan

6th May 2010, Comments 0 comments

France's PSA Peugeot Citroen said Thursday it will soon issue a statement on its long-awaited joint venture with Chinese auto maker Changan Automotive Group amid reports the two have signed the deal.

Peugeot and Changan signed an initial agreement to set up a venture in which each holds a 50 percent stake to produce light commercial vehicles and passenger cars, Internet portal said Thursday.

The framework agreement was signed on Tuesday, the report said, citing Xu Jun, assistant president of the Chinese company.

The two will have a statement on the joint venture later today, Alexis Vannier, a Beijing-based Peugeot spokesman told AFP, without giving more details.

Officials at Changan were not immediately available to comment.

Peugeot already has a joint venture with China's 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 entire market.

© 2010 AFP

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