French automaker PSA Peugeot Citroen and its Chinese joint venture partner Dongfeng Motor Group will open an assembly plant in Vietnam and have already begun production in Malaysia, according to a Dongfeng Peugeot Citroen Automobile spokesperson.
Dongfeng Peugeot is producing compact cars in cooperation with local firm Naza Group in Malaysia and plans to begin assembling in Vietnam later this year in partnership with THACO Group, the official Xinhua news agency reported on Wednesday.
The venture aims to sell 8,700 cars in the ASEAN region this year with plans to raise sales of imported and locally produced cars to 70,000 units by 2020, the spokesperson said in an emailed response to Reuters' request for comments.
Last year, Peugeot and Dongfeng agreed on a 3 billion euro ($3.34 billion) capital tie-up, giving the French carmaker much needed funding to turn its business around.
The two firms also agreed that their China JV would aim to sell 1.5 million vehicles a year starting in 2020, as well as consider setting up a new company responsible for sales in the Asia-Pacific region, especially in Southeast Asia.