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France's Peugeot and Chinese partner to develop electric cars
by Staff Writers
Paris (AFP) May 11, 2016


China auto sales growth slows in April: industry group
Shanghai (AFP) May 11, 2016 - Auto sales in China, the world's biggest car market and crucial to worldwide manufacturers, grew more slowly in April than the previous month as the economy faltered, data from an industry group showed Wednesday.

Sales reached 2.12 million units in April, up 6.3 percent year-on-year, the China Association of Automobile Manufacturers (CAAM) said.

But both the growth and total sales fell short of March, when vehicle sales rose 8.8 percent to 2.44 million units.

China's economy -- the world's second largest -- grew 6.7 percent year-on-year in the first quarter, its slowest expansion in seven years. But economic figures for April have dashed hopes for a rebound in the economy.

Auto sales reached 24.6 million last year and in October the government sought to boost the market by slashing the purchase tax on passenger cars with small engines in October.

Sales of passenger cars with engines smaller than 1.6 litres rose 12.1 percent in April from a year earlier to 1.28 million units, CAAM said in a statement.

Some foreign auto makers outperformed the overall market. US auto giant General Motors sold 277,979 vehicles in April, up 7.5 percent year-on-year, the company said.

But another US auto maker, Ford, said its sales dropped 11 percent to 82,324 units last month, in part due to maintenance at one of its assembly plants, according to a statement.

French carmaker PSA Peugeot Citroen and its Chinese partner Dongfeng Motors said on Wednesday they had agreed to jointly develop electric cars from 2019.

The two companies will set up an electric version of a common platform for producing cars for Peugeot, Citroen, DS and Dongfeng, PSA said in a statement.

They said the plan aimed at revenues of more than 100 billion yuan (13.5 billion euros, $15.4 billion) by 2020.

PSA and Dongfeng also signed an agreement on human resources "designed to increase synergies to develop talent internationally", according to the statement.

Carlos Tavares, PSA chairman, 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."

Dongfeng Peugeot Citroen Automobile (DPCA) sold 710,000 vehicles in China last year.

Dongfeng Motors, like the French state, holds a stake of about 14 percent stake in PSA and is China's second-biggest carmaker.

smr/kjm/jh

PSA PEUGEOT CITROEN

Dongfeng Motor Corporation


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