PSA, Dongfeng Finalize Plan to Restructure JV

PSA Group says it is launching a restructuring plan for its 27-year-old carmaking venture with Dongfeng Motor Group in Wuhan, China, to cut costs and boost sales.

Dongfeng Peugeot Citroen Automobiles aims to reduce its annual breakeven point below 180,000 vehicles this year and below 150,000 units by 2021, according to Reuters. The news service cites a PSA social media post in China.

The restructuring plan calls for the disposal of unused assets, consolidation of production resources, greater operating efficiencies and a rollout of new models.

The venture hopes that 14 new cars and crossover vehicles—each with an electrified powertrain option—will enable it to push annual deliveries to 400,000 units by 2025 from 250,000 units last year. PSA’s sales in China peaked in 2014 at 734,000 cars.

Last month Reuters reported that PSA’s venture will eliminate 4,000 jobs over three years and shed two of four shared assembly plants. One company source told the news service at the time that PSA was “just a whisker away” from withdrawing from the Chinese market.