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.