PSA Peugeot Citroën to establish Joint Venture Project with Hafei

PSA Peugeot Citroën and Chinese carmaker Hafei today signed a memorandum of understanding to start a feasibility study of a 50-50 joint venture creation. The new venture will manufacture small people movers (under 10 passengers) for the Chinese market. The vehicles will be produced by Hafei's plant in Shenzhen.

The signing of the MOU demonstrates the Group's commitment to speeding up its development in China, one of its three international strategic growth regions.

PSA Peugeot Citroën operates in China through Dongfeng Peugeot Citroën Automobiles (DPCA), a 50-50 marketing and manufacturing joint venture established in partnership with Dongfeng Motor. DPCA sold 201,300 vehicles in 2006 and 87,100 vehicles in the first five months of 2007.

PSA Peugeot Citroën is Europe's second-largest carmaker and leading manufacturer of light commercial vehicles.

Hafei is a Chinese carmaker and a subsidiary of the AVIC aeronautics company. Its production reached 260,000 cars in 2006.