Motor group expands in China

and Dongfeng Motor Group are expanding the manufacturing facilities for their joint subsidiary Dongfeng Peugeot Citroën Automobiles (DPCA) to reflect their growth in

.

The group has already doubled capacity at its Wuhan plant, which is being stepped up to 300,000 units a year by 2008. The DPCA board has now decided to actively search for a new production site. DPCA says it will announce the exact location and schedule for the new facility within the next few months.

DPCA also intends to strengthen its product range. Vehicles are currently produced on two production platforms that have been in use since mid-2004. A third platform will be introduced by the end of the decade for the production of upper mid-range models. This will eventually enable DPCA to offer a range of vehicles from compact cars to large executive saloons. Production of nine models is scheduled to begin at the Wuhan plant between 2006 and 2009, including three new models this year.

In addition to the Peugeot 307, which has been produced since July 2004, and the Peugeot 206, which started production in March 2006, production of two new Citroën models will begin later this year; the Citroën C-Triomphe, unveiled in Shenzhen in February, and later in the year, a new compact Citroën that will increase Wuhan’s range to eight models.

Peugeot Citroën has also created Peugeot Citroën China Automotive Trade Company, a wholly-owned subsidiary, to import additional Peugeot and Citroën models not produced in China.