PSA to increase annual purchase in China

PSA Peugeot Citroen will purchase annually EUR 600 million (RMB 6.5 billion) of auto parts from suppliers in China from 2010 on, disclosed by an official from PSA.

PSA pays great attention to its development in China, and has begun its cooperation with Dongfeng Motor and DPCA, two domestic automobile manufacturers. Its short-term goal is to restore 5% market share and the mid term goal is to achieve the annual sales of one million cars by 2015, told by CEO of PSA.

In order to realize this target, five new models will be introduced by DPCA in 2008 and 15 more models will be launched before 2013. DPCA's second-stage facility will commence operations in 2009, and the construction of third-stage facility is under planning.

By the end of 2007, PSA has 1,307 employees for the purchase business worldwide. In 2004, it set up its first purchase center in Shanghai, to cooperate with the suppliers from Mainland China, Taiwan and South Korea and to supply its facilities in Europe and South America. The aggregated purchase volume of this center has reached EUR 350 million, according to sources.