PSA Confirms Sale of Stake in Changan Venture
PSA Group confirms it is selling its 50% stake in a carmaking venture with China’s Changan Automobile Group.
The 8-year-old partnership, called Changan PSA Automobiles Co. (CAPSA), makes models for PSA’s upscale DS brand. But Automotive News Europe says the marque retailed fewer than 4,000 such vehicles in China last year against CAPSA’s capacity to build 200,000 vehicles annually.
PSA also intends to stop using two of the four auto plants it shares in a separate venture with Dongfeng Group, according to Reuters. That alliance makes mass market Citroen and Peugeot cars.
PSA had expected to be selling at least 1 million cars per year in China by now. But Reuters says the company’s overall sales in the country in 2018 totaled fewer than 263,000 units.
It’s the fifth generation of a vehicle that has been increasing in sales year after year since its introduction in 1997.
Dan Nicholson is vice president of General Motors Global Propulsion Systems, the organization that had been “GM Powertrain” for 24 years.
For conducting business in the U.S. market, Toyota has historically had several separate business entities: a sales and distribution company headquartered in California (Toyota Motor Sales, USA); manufacturing operations (Toyota Motor Manufacturing North America); a racing subsidiary (Toyota Racing Development, USA); the Toyota Technical Center for R&D in Ann Arbor; and a design facility in California (Calty Design Research, Inc.). On April 1, 2006, Toyota merged its R&D operations and its manufacturing operations into a single company.