AutoBeta(AutoBeta.net)09/29 Report--

With the decline of DS and Renault in the passenger car market, the sense of existence of French car companies in China will become worse and worse. To this end, PSA Group plans to take a series of measures to help Dragon Motor through the crisis, to a certain extent, strengthen its own determination not to withdraw from China's development.

On September 29th, PSA Group and Dongfeng Motor announced that they would provide 50 million euros to DPCA in the fourth quarter of this year. Dongfeng will also provide strong support for the liquidity needs of DPCA's production and operation. In addition, from 2020 to 2037, PSA Group will provide DPCA with hundreds of millions of yuan every year for the brand image construction and channel development of Dongfeng Peugeot and Dongfeng Citroen. At the same time, the two major shareholders have also decided to increase the capital of DPCA in the first quarter of 2021.

In addition to the long-term support projects from shareholders, the board of directors of DPCA has recently made a decision to add another 150 million yuan in business expenses in the fourth quarter of this year to strengthen regional marketing in various regions. to support the bottom rebound of DPCA's overall sales.

DMC said that the above measures show the firm determination and determination of PSA Group and Dongfeng Company for the long-term development of DPCA, and are also a solid response to the previous decision of shareholders of both sides to extend the term of the joint venture for another 10 years to 2037.

On Sept. 17, DPCA suddenly announced a personnel reshuffle, with Chen Bin, the deputy general manager, who has been in office for only 16 days, and MASSIMO ROSERBA, the former general manager, who has left office. According to the agreement between the two sides, the post of general manager of DPCA is rotated between China and foreign countries.

The change of senior management of DPCA has something to do with its performance. Over the years, DPCA has not been able to get out of the embarrassing situation of declining performance. After peaking at 704800 in 2015, DPCA's average sales halved from 2016 to 2019, falling from 704800 in 2015 to 113600 in 2019, a drop of more than 80%. From January to August this year, the cumulative sales of DPCA were only 81045, a decline of 63.36 per cent.

Although the sales volume of DPCA has dropped to a freezing point, PSA remains firm on its development prospects in the Chinese market, saying that it will "resolutely not withdraw from the Chinese market".

Whether DPCA will become the next Dongfeng Renault is the biggest concern and concern of the outside world. At present, the share of the domestic market, including Peugeot, Citroen, DS and Renault, has fallen to 0.3 per cent. DS brand has been abandoned by Chinese and foreign shareholders, although it is owned by Baoneng Group, it is difficult to get market recognition. Dongfeng Renault, the passenger car market, has announced its withdrawal, and although Renault wants to make a difference in the new energy market and the commercial vehicle market, the outlook remains bleak. Today, the only French brands left are Peugeot and Citroen, but judging from the current situation, there is a lot of pressure on their development.

Chen Bin took over as DPCA and received a huge amount of financial support from shareholders, which is a great opportunity for the development of DMC. At present, although the brand existence of DPCA is not strong, there are still some Chinese consumers who like French cars. DPCA should still be good at seizing the changes in the global market and adjusting product strategy and brand strategy. starting from the preferences of consumers to introduce and upgrade products to cater to consumer psychology to reshape the brand.

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