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PSA halts plan to make minicar in China
Because of economic difficulties in and outside China, PSA/Peugeot Citroen SA has postponed development and production of a new minicar based on the Citroen C1 and Peugeot 107 here, supplier sources say.
Two sources at Tier 1 global suppliers said they had previously received requests for quotations and requests for information for producing a car called the A5.
Now, however, the project has been put on hold, the suppliers say.
The original intention was for PSA to start building the car, known as the A5 here, in 2012 in Wuhan, Hubei province. The car was intended for domestic sale as well as export, the supplier sources say.
Through its joint venture with Dongfeng Motor Co., the French carmaker now runs two plants in Wuhan. The A5 was expected to be built at a third plant.
Local government reports say an area of land with 1.6 million square meters has been cleared for construction of a new auto plant.
'Different circumstances'
When questioned about the PSA's minicar plans for China in 2012, Alexis Varnier, spokesman for PSA in China, said: "I've not heard about that."
He also said he was not aware of PSA's plans for a third plant in China.
A PSA spokesman in Paris told Automotive News that there were "never any formal plans" to build a third plant in China.
"This was something that (former CEO Christian Streiff) may have spoken about, as part of discussions on potential strategy when he took over in 2007, but those were entirely different circumstances than the ones we face today," the spokesman said.
PSA in Paris had no comment about its product planning strategy for China and whether it may one day launch a minicar similar to the C1 and 107.
Supplier sources say the A5 was to be built on a platform developed jointly by PSA and Toyota in 2004 and now used for three cars built in Kolin, Czech Republic: the 107, C1 and Toyota Agyo.
PSA currently produces five Citroen models and three Peugeot models in China. They include the Citroen Elysee and C-Triomphe sedans, the C-Quatre and Xsara Picasso hatchbacks, the C2 small hatchback, the Peugeot 307 sedan and its hatchback version, and the small hatchback and sedan versions of 206 and 207.
Combined sales of these models were 178,308 units in 2008, 14 percent less than in 2007, according to JATO Dynamics.
Two sources at Tier 1 global suppliers said they had previously received requests for quotations and requests for information for producing a car called the A5.
Now, however, the project has been put on hold, the suppliers say.
The original intention was for PSA to start building the car, known as the A5 here, in 2012 in Wuhan, Hubei province. The car was intended for domestic sale as well as export, the supplier sources say.
Through its joint venture with Dongfeng Motor Co., the French carmaker now runs two plants in Wuhan. The A5 was expected to be built at a third plant.
Local government reports say an area of land with 1.6 million square meters has been cleared for construction of a new auto plant.
'Different circumstances'
When questioned about the PSA's minicar plans for China in 2012, Alexis Varnier, spokesman for PSA in China, said: "I've not heard about that."
He also said he was not aware of PSA's plans for a third plant in China.
A PSA spokesman in Paris told Automotive News that there were "never any formal plans" to build a third plant in China.
"This was something that (former CEO Christian Streiff) may have spoken about, as part of discussions on potential strategy when he took over in 2007, but those were entirely different circumstances than the ones we face today," the spokesman said.
PSA in Paris had no comment about its product planning strategy for China and whether it may one day launch a minicar similar to the C1 and 107.
Supplier sources say the A5 was to be built on a platform developed jointly by PSA and Toyota in 2004 and now used for three cars built in Kolin, Czech Republic: the 107, C1 and Toyota Agyo.
PSA currently produces five Citroen models and three Peugeot models in China. They include the Citroen Elysee and C-Triomphe sedans, the C-Quatre and Xsara Picasso hatchbacks, the C2 small hatchback, the Peugeot 307 sedan and its hatchback version, and the small hatchback and sedan versions of 206 and 207.
Combined sales of these models were 178,308 units in 2008, 14 percent less than in 2007, according to JATO Dynamics.
