Dongfeng-PSA venture's 2018 loss balloons as sales plunge
Automotive News China
Automotive News | 2019-3-8
Dongfeng Peugeot Citroen Automobile Co., a 50-50 joint venture between Dongfeng Motor Group Co. and PSA Peugeot Citroen, lost nearly 3.7 billion yuan ($552 million) in 2018 because of an extended sales plunge.|
That was about eight times the loss of 465 million yuan the partnership incurred in 2017, according to Dongfeng, a Hong Kong-listed, state-owned Chinese automaker.
After hitting a high of 704,000 vehicle sales in 2015, Dongfeng Peugeot Citroen¡¯s annual deliveries have slumped for the past three years. In 2018, sales plunged 33 percent to around 253,000.
As a result, 2018 revenue fell 31 percent to 28.3 billion yuan.
Dongfeng Peugeot Citroen, headquartered in the central China city of Wuhan, can produce up to 840,000 vehicles annually for the Peugeot and Citroen brands at full capacity.
This year didn¡¯t begin well for the joint venture. In January, sales tumbled 63 percent from a year earlier to around 12,300, according to the China Passenger Car Alliance, a Shanghai consultancy.
PSA also operates a joint venture with Changan Automobile Co., which builds and markets Citroen DS product line. But Changan PSA has fared no better than Dongfeng Peugeot Citroen.
With annual production capacity of 200,000 vehicles, Changan PSA sold fewer than 3,900 vehicles last year, according to China Passenger Car Alliance.
Entire contents © Crain Communications, Inc.
Use of editorial content without permission is strictly prohibited. All Rights Reserved.