Peugeot Citroen faux pas: Still out of step?

BEIJING - PSA Peugeot Citroen plans to create an all-new passenger car brand in China based on models from Chang'an Automobile Group, its newly courted local partner, to tap the world's biggest vehicle market, according to an anonymous industry source with knowledge of the matter.

The two parties signed a letter of intent on May 6 to set up a 50-50 joint venture producing "environmentally friendly passenger cars" and light commercial vehicles, the source said without revealing further details.

The industry insider added that light commercial vehicles made at the joint venture will carry the Peugeot or Citroen marque.