PSA eyes new start in Chengdu

Turnaround is part of a bailout by Dongfeng two years ago

PSA Group, caught in a China sales slump despite an expanding market, will inaugurate a seventh factory in the world's biggest car market this week, focused on producing sport utility and multipurpose vehicles for its Peugeot and Citroen brands.

The plant in Chengdu in southwestern China will have an annual capacity to manufacture 300,000 Citroen and Peugeot vehicles, as well as the local Fengshen nameplate, as part of its joint venture with shareholder Dongfeng Motor Co. Production will start at the end of the year.