PSA Peugeot Citroën and Dongfeng Motor have reached an agreement to jointly develop a platform that will underpin electric vehicles.
The French were having some major financial issues a couple of years ago, but China's Dongfeng came to the rescue and bought a 14-percent stake in exchange for €800 million (about $911M). In 2015, the two started working on a new common modular platform (CMP) which will be used on a wide variety of models for the Peugeot, Citroën, DS, and Dongfeng brands. Now, an agreement has been reached to extend the collaboration and co-develop a second architecture called “e-CMP” specifically for EVs.
The new deal is part of the "5A+" medium-term plan for Dongfeng Peugeot Citroën Automobile (DPCA) and the plan is to roll out the first electric vehicle based on e-CMP in 2019. These two platforms are being engineered to tailor subcompact and compact models that will serve all of the brands.
DPCA’s new medium-term plan also includes the objective to achieve revenue of more than RMB 100 billion yuan (about $15.4 billion) by the end of the decade. PSA and Dongfeng will also focus on boosting productivity gains by 30 percent in the next four years and are also aiming to increase customer satisfaction.
As a side note, the latest product to come from the PSA Dongfeng collaboration is the second-generation Citroën C6. It’s basically a more upscale variant of the Dongfeng Fengshen A9 with Citroën’s double chevron logo and will be sold exclusively in China.
Gallery: PSA, Dongfeng announce EV collaboration
PSA Group and Dongfeng Motors (DFM) have signed two new agreements to strengthen their strategic partnership
A new milestone in the strategic partnership between PSA Group and DFM was reached at the presentation of the new "5A+" medium-term plan for Dongfeng Peugeot Citroën Automobile (DPCA)
At the presentation of the DPCA strategic plan on Wednesday, 11 May, Carlos Tavares and Zhu Yanfeng, the respective chairmen of DPCA's two company shareholders, signed an agreement to design an electric version of the Common Modular Platform (CMP), which they have been developing jointly since April 2015.
This future electric platform (e-CMP) will deliver a worldwide offering of all-electric, high-performance B and C segment vehicles for the Peugeot, Citroën, DS and Dongfeng brands from 2019.
PSA Group and DFM also signed a framework Human Resources agreement designed to increase synergies to develop talent internationally.
In practical terms, the agreement will provide for temporary employee exchanges between operational teams in the fields of Research & Development, Marketing, Manufacturing, Finance and Human Resources. Best practices will also be shared in each area of HR to identify potential areas of cooperation.
For PSA Group, the agreement goes hand in hand with its Push to Pass strategic plan and serves to address a number of human resources challenges.
At the ceremony, Carlos Tavares, Chairman of PSA Group's Managing Board, emphasised the effectiveness of the collaboration between the PSA and DFM teams and the importance of building on its synergies through talent sharing. He said: "The future e-CMP platform is a key milestone in our partnership with Dongfeng. It will speed up the worldwide development of both of our groups, while helping us to reach the strict carbon objective set for 2020”.
The new “5A+” medium-term strategic plan is designed to make DPCA "an efficient car manufacturer, capable of providing its customers with comprehensive mobility solutions."
The plan has three strategic focuses:
- To significantly increase customer satisfaction with products and services, with the aim of moving into the top 3 ranking in the industry by 2018 and becoming No.1 in 2020.
- Generate revenue in excess of RMB 100 billion by 2020.
- To ensure profitable, sustainable growth underpinned by productivity gains of 30% by 2020.