Dongfeng PSA Game development: Weidong would like to integrate the cost pressure

Posted on 4/14/2015 5:45:45 PM

(Known as Dongfeng under) stake in Dongfeng Motor Group Peugeot Citroen Group (hereinafter referred to as PSA) A year later, the two sides are the key research areas of the game integration.
"Dongfeng Passenger technology a few years ago almost no accumulation of technology, only to be the platform from the joint venture, but others can give, you can not give, this is not a permanent solution. After the establishment of alliances and PSA, Dongfeng and PSA Shanghai Technical Center R & D Center, Dragon Technology Center has cooperated so. "Dongfeng insiders say, this is not the only one to reach the target shares Dongfeng PSA.
Last March 26, Dongfeng signed in Paris with PSA "on shares of the total capital increase agreement," inject about € 800 million stake in PSA, 14% of the shares held by the PSA Group, which the French government and PSA Peugeot became the first family of parallel a major shareholder. Then on March 28, the two sides signed a "global strategic alliance agreement" in Beijing to deepen global cooperation in industrial and commercial fields.
Previously, Liu Weidong, deputy general manager of Dongfeng Group in an interview with 21st Century Business Herald reporter, said that when the main purpose of Dongfeng PSA shares have two, one "Dongfeng go out", the second is "to support the development of independent brands by PSA." The content of the cooperation agreement is also the main focus of these two objectives.
Over the past year, Dongfeng and PSA set up overseas sales companies, import car business was placed into the joint venture Dongfeng Peugeot Citroen car. Now, how to borrow PSA research and development, supply chain resources to support the Dongfeng brand development, a bilateral cooperation last pass inspection.
According to Dongfeng's expected future passenger car product line in the east, will appear in the main east-built technology center A series and Dragon-based technology center to create L series, two series of the future there could intersection. "Peace will not be shared technology platform, such as platform and now Dongfeng PSA platform for cooperation, the next platform will have some international cooperation, has been exploring." Liu Weidong said.
Currently, the two sides after a limited partnership to get the platform, Dongfeng do modeling and design technology center, DPCA is responsible for production at its plant, Dongfeng Peugeot Citroen Automobile passenger car factory for the production of products. The advantage of this model is that, at a certain scale Dragon basis, coupled with Dongfeng Passenger's products in the industry to form a larger, lower costs; and Dongfeng Passenger product from the joint venture plant, more quality assurance, easier access to consumer recognition, Dragon actually "pull Fu" Dongfeng brands.
But Dongfeng apparently more willing to cooperate more access to core resources on both sides. According to informed sources, the two sides plan on April 19, Dongfeng PSA shares an anniversary release of results of cooperation in Shanghai, one of the important contents of the parties involved in the integration of R & D institutions plan.
According to Dongfeng originally conceived, after its shares PSA, PSA Asia-Pacific R & D center is positioned as a joint venture between Dongfeng and PSA, they intend to follow equity ratio of 50:50 joint venture company. DS R & D team which will be stripped, the R & D team will go to Shenzhen, Changan Peugeot Citroen service. But did not imagine this progress smoothly.
According to informed sources revealed to the media, the current PSA Shanghai R & D center is not a legal entity, but a branch office in Asia Operations, which makes the establishment of a joint research and development of the company's complicated.
In addition to the integration of research and development areas in the east also hopes the two sides can reach overseas markets for more cooperation. "Now the relationship between passenger vehicles and Dongfeng Peugeot Citroen Automobile, has become the relationship between producers and sellers. This business model is indeed very complex, we have designed a risk-sharing, such as Dragon production car, passenger car sales do not go out, Dragon will suffer; passenger cars sell better, the more benefit Dragon "Weidong that this co-production model, currently there are many success stories in the world, but also the trend of the future of automotive development.
In this mode, Dongfeng Passenger rely on PSA's resources, it is likely to go overseas. Dongfeng shares PSA, PSA in the Southeast Asian market, will be given to DPCA care. According to DFG's plan, the next PSA factory in Southeast Asia, will produce Dongfeng Passenger brand products.
"This adjustment to facilitate the coordination and management of the joint venture subsidiaries." Liu Weidong said. This actually enhances the DPCA autonomy, the French PSA would like to see. DPCA's has four factories, import and export trading companies and the integration of the original PSA after Shanghai R & D Center R & D centers, control of these subsidiaries, Dongfeng Peugeot Citroen Automobile and PSA will be higher than the two shareholders will.

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