The 2 partners own 3 factories in the country, at
The construction of the plant will begin in the second half of 2014 and will increase the group's total Chinese capacity to 1 million vehicles in 2016.
The new facility focuses on making crossover vehicles, which is a cross between a car and a sport utility vehicle, and a 4-wheel-drive vehicles under the
The Chinese government is encouraging car manufacturers to build new factories in the west to boost development of backward regions.
PSA and Dongfeng aim to sell more than 650,000 vehicles in
This rises to 1.5 million by 2020 as a result of their increased cooperation which involved Dongfeng becoming a shareholder in PSA.
The group is struggling due to severe financial difficulties, and is focusing on
PSA has another joint venture with Changan at
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