The Joint Venture of Peugeot and China Changan Automotive
06/05/2010
French car giant Peugeot has signed an initial agreement with domestic car maker China Changan Automotive Group, though financial details are still being discussed.
If it goes ahead, the deal will give Peugeot a bigger foothold in the fast-growing Chinese car market - now the biggest in the world. It will also add to Peugeot's existing venture with Dongfeng Motor Group.
Last year, its production made up 3.5% of the Chinese market.
The new venture is expected to focus on light commercial vehicle production - a market where US rivals General Motors and Ford already have a foothold.
China is seen as an increasingly important market for global car makers who have suffered massive declines in demand in more developed global markets.
China Changan Automotive is currently the fourth-largest car maker in China.