PSA to develop and build vans and minibuses with Chinese maker Hafei
29 June 2007

The parent company of French car-makers Peugeot and Citroen has today announced the beginnings of a deal to extend its presence in the burgeoning Chinese car-market, and to safeguard its future against the effects of the rigourously competitive European market.PSA already has a deal with Chinese firm Dongfeng to produce versions of the Peugeot 206 and 307, and the Citroen C2, C4 and Xsara Picasso in China; that deal will be expanding in 2009 to include cars on the firm's large car platform, which underpins the current 407, 407 coupe, C5 and C6.This new agreement, a 50-50 venture with Hafei, will allow PSA to sell vans and minibuses in China too. PSA spokesman Nicholas Lee told Autocar that "it's early days, but I would expect it to allow us to build various sorts of light commercial vehicles, based on modified vehicle architecture already within the PSA group, for the Chinese market."It's another potential money-spinner for PSA, Europe's second-largest car-maker, which installed new boss Chrisitian Streiff only last year, and is currently midway through a large and costly project to reduce the carbon emissions of its European models by taking weight out, and through a more widespead application of engine stop-start technology.

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