AutoBeta(AutoBeta.net)09/27 Report--

PSA Group (PSA Citroen) plans to provide a sum of money to help DPCA tide over difficulties after making a decision not to withdraw from its joint venture in China, which has been performing poorly in the market.

Recently, Chen Bin, the new general manager of Shenlong Automobile, said at the media meeting that PSA will allocate a large amount of money to support Shenlong to relieve the pressure on funds. This part of funds will be mainly used in marketing and the use is not restricted. At the same time, Dongfeng Motor will also provide a large amount of help to Shenlong Automobile in terms of funds.

In Chen Bin's view, this move shows the support of shareholders on both sides for Shenlong and will not allow it to slump. "The Divine Dragon is on the verge of life and death, and this cannot be avoided. Dongfeng and Peugeot Citroen can't afford to lose this battle, and we're starting to make substantial moves now." Chen Bin said so.

On September 17, Shenlong Automobile Co., Ltd. ushered in an important personnel adjustment. After communication between both shareholders, the Party Committee of Dongfeng Company decided to appoint Chen Bin as the general manager of Shenlong Automobile. It means that Luo Sibo, the French executive who took office for one and a half years, stepped down, and Shenlong Automobile once again entered the era when Chinese executives played the role of "top leader".

As one of the earliest Sino-foreign joint venture automobile enterprises established in China, DPCA also achieved its goal of rapid development in the early stage. It owns Dongfeng Peugeot and Dongfeng Citroen joint venture brands, reaching the peak of annual sales of 700,000 vehicles in 2015. Under the factors of enterprise strategy error and slow product renewal, DPCA began to decline. The annual sales volume of DPCA has declined to 253,400 units in 2018 and further declined to 113,600 units in 2019. A series of plans formulated by DPCA to return to normal development track continue to be frustrated.

In 2020, DPCA has launched new Peugeot 2008/e2008, Citroen C3L, Peugeot 4008 hybrid/Citroen Tianyi hybrid and other new vehicles, but failed to reverse the depressed sales situation of the enterprise. From January to August this year, the cumulative sales of Shenlong Automobile were only 29693 vehicles, down 63.36% year-on-year.

Chen Bin said,"The dragon is on the edge of life and death, this cannot be avoided." Dongfeng and Peugeot Citroen can't afford to lose this battle, and we're starting to make substantial moves now."

On the appointment of the general manager, representatives of both China and France expressed their views.

Olivier, Executive Vice President of PSA Group, President of China Region and Vice Chairman of Shenlong Company, participated in the cadre meeting held by Shenlong Automobile Co., Ltd. via video link. Olivier said that PSA Group would support the Sino-French operation team led by Chen Bin together with Dongfeng Company to help Shenlong get out of the business dilemma as soon as possible. PSA Group is working with Dongfeng to explore further support plans. He requested that Shenlong Company should focus on three goals: ensuring cash flow, continuously improving sales volume and effectively improving quality level.

Chen Bin also said that he would lead the cadre and staff team to take solid steps in marketing breakthroughs, improving quality, reducing costs and deepening reforms as soon as possible. He said that he would lead cadres and employees to strengthen confidence, break the boat and fight against the water, give priority to solving the problems at the market end, realize the month-on-month increase of sales volume as soon as possible, and strengthen the confidence of all parties. At the same time, we will do a good job in the key work of the whole value chain, improve the ability of the enterprise system, and better support the sales work.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat