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Comprehensive foreign reports, China Dongfeng Motor and the French PSA Peugeot Citroen recently finalized a global strategic alliance agreement, executives disclosed that in addition to the two sides in the Asia-Pacific region will work together, but also hope to jointly explore Russia and Brazil and other emerging markets.
Cooperation next stop: Russia? Brazil?
On March 28th, Dongfeng Motor Group Co., Ltd. and PSA Peugeot Citroen signed the "Global Strategic Alliance Cooperation Agreement" in Beijing. This is another major agreement following the signing of the "General Agreement on Capital Increase and Share-holding" in Paris on March 26. The two sides will deepen cooperation in the industrial and commercial fields.
Xu Ping, Chairman of Dongfeng Motor, Zhu Fushou, President of Dongfeng Motor, Philippe Varin, CEO of Peugeot Citroen, and Carlos Tavares, CEO of the new Peugeot Citroen on March 31, originally translated Carlos Tavares ) Take the lead in signing the strategic cooperation agreement.
At the media briefing, Xu Ping told the media that the future cooperation scope of Dongfeng and PSA Peugeot Citroen is not limited to the current fixed area, and the Asia-Pacific region is “just a starting point†and may be extended to markets such as Brazil and Russia in the future. In the announcement of Peugeot Citroën on February 19th and the General Agreement on Capital Increase and Shares signed by both parties on March 26th, Dongfeng and Peugeot Citroen announced that they would jointly develop the Southeast Asian market. Xu Ping’s remarks indicate that the focus of cooperation is still in emerging markets, and may radiate outside the ASEAN region.
When Tang Weishi joined Peugeot Citroën earlier this year, he said that Russia and South America are areas where the company needs to focus on improving its performance.
In recent years, the sales of PSA Peugeot Citroen in the Chinese market have continued to rise to reduce its dependence on the European market. To this end, PSA Peugeot Citroen has continued to increase in size in China, and has increased cooperation with local partners such as Dongfeng and Changan.
The annual financial report of PSA Peugeot Citroen shows that in 2013 the total sales of the Group in China was 556,629 units, which was 26.1% higher than the 441,512 units in 2012. Peugeot brand from 215,886 vehicles increased by 25.8% year-on-year to 271,587 units, while the Citroen brand increased by 26.3% from 225,626 vehicles to 285,042 units.
After the signing of the "General Agreement on Capital Increase and Shares," Dongfeng will inject capital of 800 million euros, hold 14% shares, and become the largest shareholder of the group together with the French government and the Peugeot family through a private placement and share placement subscription. Tripartite equal shares.
Global cooperation
According to the contents of the "Global Strategic Alliance Cooperation Agreement," Dongfeng and PSA Peugeot Citroën will deepen cooperation from various aspects including international business, commodity and technology coordination, procurement and supply chain cooperation, and reaffirmed the "General Agreement on Capital Increase and Shares" mentioned in the agreement. The three major strategic cooperation.
1. In terms of international business, the two parties will jointly establish a new joint venture sales company responsible for the sales and service of Peugeot, Citroën and Dongfeng Fengshen’s own brands in the Asia-Pacific (especially Southeast Asia/ASEAN) region, driving sales growth and realizing the three brands. The synergy effect promotes the sharing, collaboration, and development of networks, and considers expanding export business beyond the Asia-Pacific region (such as Russia and Brazil mentioned by Xu Ping).
PSA Peugeot Citroën and Dongfeng will jointly develop vehicle platforms, modules, models and passenger car parts for emerging markets; use the advantages of production capacity and commercial networks established or to be established in their respective regions and countries to help the other party Explore the business development of its brand.
2. In terms of product and technology synergy, the two parties will integrate PSA’s existing Asia Pacific Technology Center and establish a new R&D center in China. Through the collaboration of product platforms, powertrains, and parts and components, we will share resources and improve R&D. Efficiency, lower product R&D costs; cooperation ranged from stages such as product pre-study, modelling to industrialization, and full-value chain R&D capabilities.
In the future Peugeot, Citroen, and Dongfeng brands, each brand will develop and launch at least one new model each year to promote the annual sales of Shenlong Motors by 1,500 vehicles in 2020.
The new energy field is also the focus of cooperation between the two sides. Both parties will strengthen cooperation in the core areas of new energy globally, including the research and development of new energy vehicles and the development of new energy vehicles.
3. In the aspect of synergy between procurement and supplier systems, PSA Peugeot Citroën and Dongfeng plan to jointly plan, establish and improve supplier systems and corresponding operational mechanisms at the product development stage to promote cost reduction, and further discuss coordination of global supplier relationships and establish synergies. Supply chain system and mechanism.
The two parties also reached an agreement that PSA Peugeot Citroën will promote the application of Dongfeng Group and Shenlong Motors in the reduction of product costs in products worldwide to further reduce the procurement costs of Peugeot Citroën and increase the competitiveness of its products.
In order to implement, coordinate, and advance the specific operations of the global strategic alliance, the two parties will jointly establish a global strategic alliances cooperation committee, and before the end of 2014, they will determine that the two parties are involved in international business cooperation, product and technology collaboration, procurement, and supplier system collaboration. Goals and specific implementation plans.
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