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PSA Peugeot Citroen expands Chinese development

PSA Peugeot Citroen and Dongfeng Motor Group are expanding their industrial plan for their joint Chinese subsidiary Dongfeng Peugeot Citroen Automobiles (DPCA).

After doubling capacity at the Wuhan plant, which is being stepped up to 300,000 units a year in 2008, the DPCA board decided on Saturday to actively search for a new production site.

The exact location and schedule for the new facility will be announced within the next few months. DPCA also intends to produce upper mid-range models before 2010.

This will eventually enable DPCA to offer a range of vehicles, from compact cars to large executive saloons. Production of nine models is scheduled to begin at the Wuhan plant between 2006 and 2009, including three new models this year alone.

DPCA sales rose by 57.5% to 140,400 units from 89,100, in a market that expanded by 24% in 2005. The 2006 sales target has been set at over 200,000 units.

PSA has also created Peugeot Citroen China Automotive Trade Company in response to its Chinese expansions.

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