PSA Group: Dongfeng Commercial Vehicle belongs to Changan


On September 21st, PSA President Philip Varan will witness with Dongfeng Motor Company Chairman Xu Ping that Dragon Motors will issue a new development strategy plan. The industry rumors that the Dragon Motors released a new strategic plan is the PSA to cooperate with Changan, and to appease Dongfeng Motor's initiatives.

The author believes that for Dongfeng and Changan, both of which are very strong in China's auto industry, PSA offends any one of them and is extremely unfavorable to them. However, if there is no clear distinction and positioning between the two companies in terms of product structure, it is certainly difficult for the PSA industry.

However, from the fact that PSA currently does not have a product line that is as rich as Toyota and Volkswagen, PSA would like to have a good relationship between Dongfeng and Changan, integrate the car business into its joint venture with Dongfeng, and integrate the commercial vehicle business with Chang'an's joint venture, or PSA can choose the best decision.

The comprehensive analysis of the current information on PSA, Dongfeng and Changan, the author found that PSA seems to have a clear plan for the specific cooperation with Dongfeng and Changan.

In cooperation with Changan, it was reported long ago that PSA will cooperate with Changan in the field of high-end cars for light commercial vehicles and Citroen DS series high-end cars. However, in July of this year, online media disclosed that before the rumors of a joint venture between Changan and PSA, DS3 would introduce domestically-made news. It was clarified by PSA China insiders that "From the time point of view, DS3 is not suitable for domestic production." deny. In other words, the Citroen DS3 has clearly not been introduced into domestic production, and will only be sold domestically in the form of imports. At the same time, the domestic spy photos of the Peugeot Expert commercial vehicles have already flowed out, and the spy photos of Citroen DS series models have not been exposed at home so far. It can be seen that the pace of cooperation between PSA and Changan in the field of light commercial vehicles is significantly faster than the rumors of the car business. The author guessed that the news of PSA and Changan's so-called Citroen DS series will be nothing more than a drunkard, creating public opinion, expanding its influence, or its original intention.

In terms of cooperating with Dongfeng, Greguva Olivier, who just took the post of president of PSA Asia on September 1st, revealed that Shenlong is expected to sell 350,000 cars in China this year. The goal of PSA is to increase its market share in China from the current 3.3% to 8%. If we say that this year, Shenlong will sell 350,000 vehicles to judge its current annual production capacity of more than 300,000 units, then the 300,000 annual production capacity of the third plant of the Shenlong, which is about to be built this year, means the future Shenlong. The company's annual production capacity will be more than 600,000. In other words, in the future, the production and sales planning of Shenlong Motor will be around 600,000 units, plus the sales volume of imported and light commercial vehicles, PSA's future market share in China will increase from the current 3.3% to 8%. There is already capacity protection. At the same time, on the official website of Shenlong, one of the long-term development goals is that the overall market share of Peugeot and Citroen will reach 7%-8%. What is more worth mentioning is that, according to common sense, the sales of imported and commercial vehicles are much smaller than those of domestic cars. Judging from this, since the combined production capacity of the third plant of Shenlong Company has already helped PSA achieve the target of 8% share, why does it have to do more in one move, which has caused a lot of trouble for itself to cooperate with Changan on car business?

The author believes that PSA will conduct comprehensive and independent cooperation with Dongfeng in the passenger car field, and Changan will only cooperate in the field of light commercial vehicles. Of course, in the course of the cooperation between the three parties, it is not ruled out to learn the possibility of Shanghai Volkswagen Langyi’s “autonomous vehicle and joint venture” model.
View related topics: Dongfeng Motor - Passionate over 1 million vehicles


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