As a new step in the redesign of its strategy in China, PSA and its partner Changan are in the process of reselling their joint venture. Called Capsa, the joint venture is dedicated to the development of the DS brand.
The recovery plan continues for PSA. While the manufacturer has begun a few months of a redesign of its strategy in China, it plans to sell its shares in Capsa, a joint venture created with its partner Changan to deploy the DS brand. ” The two parent companies intend to sell their shares, ” a PSA spokesman told AFP.
For the record, PSA has sold only 262,600 vehicles in the Asian country, far from the 400,000 units targeted. A setback due to the gloom of the world’s largest market but also to the difficulty of the French manufacturer to set himself up to his ambitions.
Indeed, the Chinese manufacturer Changan, a PSA partner since 2011, and the French had signed an agreement in 2017 to install the DS brand in China and more widely in Asia Pacific. Formed by the creation of the Capsa joint venture and a joint investment of 500 million euros, this ambitious agreement provided for the launch of a new DS vehicle per year on the Chinese market. In 2018, only 4,000 DS vehicles were registered in the territory and sales even weakened in the first half of 2019, to 1,800 units.
However, the withdrawal of the two partners in the joint venture, does not mean that the PSA group abandons its desire to implement the brand. ” This operation does not question the presence of DS in China, ” said the same spokesman, reported by AFP. The French manufacturer intends to focus on preparing a new roadmap to regain profitability by 2025 and reach 400,000 registrations.