Dongfeng Peugeot-Citroën

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Dongfeng Peugeot-Citroën Automobile Limited
Private joint venture
Industry Automotive
Founded 1992 (Wuhan)
Headquarters Wuhan, Hubei, China
Products Automobiles
Owner Dongfeng Motor Corporation (50%)
PSA Peugeot Citroën (50%)
Website Dongfeng Citroen Homepage
Dongfeng Peugeot-Citroën
Simplified Chinese 神龙汽车有限公司
Traditional Chinese 神龍汽車有限公司
Literal meaning Divine Dragon Automobile Limited Corporation
2014 Citroën C3-XR[1] (DPCA)
Citroën C5 II (DPCA)
A Fengshen AX7 photographed in Xi'an, Shaanxi province, China
Citroën C4L Sedan (DPCA)

Dongfeng Peugeot-Citroën Automobile Limited[2] (DPCA) is a joint venture between Dongfeng Motor Corporation and PSA Peugeot Citroën. Based in Wuhan, capital of Hubei province, it manufactures Peugeot and Citroën models for sale in China.[2]

Its cars are well liked by consumers, and the Citroën brand received one of the highest scores in a 2014 customer satisfaction survey done by JD Power in China.[3]

Not all PSA Peugeot Citroën products available in China are sold through or manufactured by its joint venture with Dongfeng, and DS Automobiles models especially may be the domain of the French company's other China venture, Changan PSA with Changan Automobile.[4]

DPCA also produces Fengshen-branded consumer vehicles in the same factories that manufacture the PSA models these private label cars are based on.[5]

The company has CSR efforts that include education sponsorship.[6][7]

History[edit]

PSA Peugeot Citroën made an early entrance to the Chinese auto market but saw lackluster results.[8] In 1985, it established a joint venture with the government of Guangzhou, Guangzhou Peugeot Automobile Company,[9] which built the Peugeot 504/[2] 505[10] and was defunct by 1997.[2]

The current Dongfeng Peugeot-Citroën comes from a second chance at market entrance for PSA Peugeot Citroën provided to it by Dongfeng. Realizing it lacked a consumer product line, state-owned vehicle maker Dongfeng Motor Corporation initially approached Toyota in the hopes of establishing a joint venture but was rebuffed leading to the same offer being afforded PSA Peugeot Citroën.[11] Talks were reported to have taken place in Paris as early as the last 1980s with agreement reached in 1990.[12] However, the project was delayed by two years due to French government resistance following the Tiananmen Square massacre, and it only came off the ground in 1992.[11] Initially referred to as Dongfeng Citroën Automobile Company (DCAC), this joint venture company situated itself in Wuhan.[12] Its first product was a hatchback built from semi-complete knock-down kits, the ZX Fukang,[2] and by 1996 production capacity had reached 150,000 units/year with a second offering, the Fukang 988 sedan, being added in 1998.[2] The project may not have seen great success due to a limited product line and delays from the beginning.[11] In addition, early reliance on Shanghai's industrial base (and with it stretched supply chains[citation needed]) for locally sourced parts may have proved a hindrance; at the very least to the development of Wuhan's own industrial cluster.[12] As of 1997, DCAC counted amount its component suppliers 80% more Shanghai firms than those based in Wuhan, and in the early 2000s easily 50% of locally sourced parts continued to come from Shanghai.[12]

In 2002, the then-renamed Dongfeng Peugeot-Citroën Automobile (DPCA) introduced its first Peugeot-branded product.[2] That same year saw the joint venture held with equal equity between its French and Chinese parents,[12] but it wasn't until 2004 that Chinese and French banks relaxed their grip on the firm and true 50% ownership stakes were each taken by Dongfeng and PSA Peugeot Citroën.[2]

While most current offerings are versions of cars available in other markets, some vehicles have been tailored to better suit local demand such as changing hatchbacks to three-box designs.[13] At least one car, sold under the name Citroën C2,[2] appears to have been reworked extensively; confusingly the Chinese version C2 seems to have been a rebadged Peugeot model—not the "actual" Citroën C2.

Operations[edit]

Production bases and facilities[edit]

As of 2010, the joint venture has three production bases—all in Hubei province.[2] A fourth was set to become operational c. 2016 in Chengdu, Sichuan province, increasing production capacity by 300,000 units per year.[14] With the completion of this factory, total yearly production capacity will approach one million whole vehicles.[5]

A Xiangyang production base makes engines with capacity in excess of one million, yearly, and has been operational since 1996.[5]

PSA Peugeot Citroën has two facilities in Shanghai—an R&D center (the China Tech Center) and a design center.[15]

Dealer network[edit]

Its dealer network boasts nearly 300 Citroën shops in over 200 Chinese cities and about 170[15] Peugeot showrooms (other sales and service stores that carry and cater to Peugeots do exist).[2] As of 2010, imported models are also sold although by a separate, wholly PSA-owned subsidiary, Peugeot Citroën (China) Automotive Trade Co Ltd.[2] It's possible the situation has changed as of 2015 since in that year PSA Peugeot Citroën signed an agreement with Dongfeng to sell some imports.[16]

The Citroën DS5, Citroën DS 5LS and DS 6WR models are built and sold in China by Citroën DS/PSA, but these are by another joint venture, Changan PSA, established in 2010.[17]

Ownership[edit]

Ownership of the joint venture has evolved since its establishment in 1992. In 2000, ownership was: 31%, Dongfeng Motor Corporation; 39%, Chinese banks; 26.9%, PSA Peugeot Citroën; 3.1%, international banks. In 2002, both Dongfeng and PSA Peugeot Citroën took equal 32% shares, and by 2004 they had bought out the remaining equity stakes held by banks resulting in each vehicle-maker holding 50% ownership of the joint venture.[2]

In a rare move for the industry, 2014 saw Dongfeng take a 14% stake in the then-ailing PSA Peugeot Citroën, a parent company of DPCA.[18]

Sales figures[edit]

Year Vehicle sales
1996 7,200[citation needed]
1997 28,000[citation needed]
1998 33,400[19]
1999 44,300[19]
2000 52,000[19]
2001 53,200[19]
2002 85,100[19]
2003 103,100[19]
2004 89,100[20][19]
2005 140,400[20][19]
2006 201,318[20]
2007 207,500[20]
2008 189,162[20]
2009 272,000[20]
2010 376,000[20]
2011 404,437[5]
2012 436,500[note 1]
2013 550,500[note 1]
2014 734,000[note 1] 719,000[5]

References[edit]

  1. ^ "PSA launches Citroën C3-XR, 4th Chinese-built SUV". Automotive News. November 25, 2014. Retrieved 2014-12-06. 
  2. ^ a b c d e f g h i j k l m China Division: PSA Peugeot Citroën in China; NEWS KIT (PDF), PSA Peugeot Citroën, April 2010, archived from the original (PDF) on 2010-12-07 
  3. ^ "Dongfeng Citroen tie for top score in China satisfaction survey". Automotive News. 2014-07-18. Retrieved 2014-11-10. Dongfeng Citroen received the highest numerical score in a tie among auto manufacturers in mass market of the J.D. Power Asia Pacific 2014 China Sales Satisfaction Index (SSI) StudySM. 
  4. ^ "UPDATE 1-PSA JV says on schedule to sell DS cars in China". reuters.com. Thomson Reuters. 16 February 2012. 
  5. ^ a b c d e "PSA Peugeot Citroën in China (a PSA Press Kit)". groupe-psa.com. PSA Peugeot Citroën. April 2015. 
  6. ^ "Construction sponsored by Citroen on a primary school in Guangxi Zhuang and the beginning of the 2012 Citroen Red Crayon Campaign.". China Daily. 2012-11-19. Retrieved 2014-12-07. 
  7. ^ "PSA Peugeot Citroën University initiates 23 partnerships.". PSA Peugeot Citroën. 2011-09-30. Retrieved 2014-12-07. the Group has signed a letter of intent with Tongji University in Shanghai 
  8. ^ Fernandez, Juan Antonio; Liu, Shengjun (2007), China CEO: a case guide for business leaders in China, Singapore: John Wiley and Sons, p. 78, ISBN 978-0-470-82224-1 
  9. ^ Fernandez, Juan Antonio; Liu, Shengjun (2007), China CEO: a case guide for business leaders in China, Singapore: John Wiley and Sons, p. 78, ISBN 978-0-470-82224-1 
  10. ^ Webb, Alysha (20 February 2006). "A whole new world: The rise, fall and rebound of Europe’s carmakers in China". Automotive News Europe. Crain Communications. Retrieved 12 April 2016. 
  11. ^ a b c Komura, Chikara (2000). Hamada, Kōichi; Matsushita, Mitsuo; Kōmura, Chikara, eds. "Comments on "Automobile Industrial Policy and WTO Agreements: China and Taiwan", presented by Cheng-Cherng Chen". Dreams and Dilemmas: Economic Friction and Dispute Resolution in the Asia-Pacific. Singapore: Seikei University Center for Asian and Pacific Studies, Japan: 167. ISBN 981-230-069-4. 
  12. ^ a b c d e Thun, Eric (2006). Changing lanes in China: foreign direct investment, local government, and auto sector development (illustrated ed.). Cambridge University Press. pp. 174–175. ISBN 978-0-521-84382-9. 
  13. ^ Åhman, Michael, ed. (1999). Bilkatalogen 2000 (Swedish edition of German Auto Katalog) (in Swedish). Solna, Sweden: Auto Motor & Sport Sverige AB. p. 149. 
  14. ^ Laurence Frost and Gilles Guillaume (2 July 2014). "UPDATE 1-Fourth Peugeot-Dongfeng China plant gets green light". reuters.com. Thompson Reuters. Retrieved 1 March 2015. 
  15. ^ a b Peugeot sees China driving its brand chinadaily.com.cn, 2010-10-29
  16. ^ "Dongfeng-PSA to sell imported vehicles in 2015 in China.". Automotive news. November 19, 2014. Retrieved 2014-12-07. 
  17. ^ CAPSA – Chang’an-PSA’s new joint venture company chinacartimes.com, June 15, 2011
  18. ^ "Peugeot signs Dongfeng deal, recovery hurdles remain". Reuters. 26 March 2014. Retrieved 1 December 2014. 
  19. ^ a b c d e f g h Dossier de presse PSA (1996-2005) (PDF) (in French). PSA Peugeot Citroën. March 2006. Archived 2011-08-07 at the Wayback Machine.
  20. ^ a b c d e f g "Dossier de presse Chine - avril 2011" (PDF) (in French). PSA Peugeot Citroën. 18 April 2011. Archived from the original (PDF) on 5 July 2011. Retrieved 3 June 2011. 
  1. ^ a b c 2012-2014 sales figures may conflate DPCA figures with those of PSA's other China JV, Changan PSA, which had a 200,000 units/year production capacity as of 2015. "PSA Peugeot Citroën in China (a PSA Press Kit)". groupe-psa.com. PSA Peugeot Citroën. April 2015. 

External links[edit]