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Sales decline overcapacity, although many measures have been taken, but Citroen Motor has not yet achieved a "bottom rebound", the first loss in the first half of the year. Peugeot-Citroen will offer factory leases to other automakers to solve capacity problems.

According to a statement issued by Dongfeng Group, Shenlong Automobile and Shenlong Automobile sales Co., Ltd. consolidated results in the first half of 2019, with revenue of about 921 million euros, a decrease of about 59.7 percent over the same period last year, and a loss of 325 million euros (about 2.489 billion yuan). A profit of 25 million euros in the same period last year. DPCA sold 10128 units in June, down 54.3% from a year earlier, with cumulative sales of 63027 units from January to June, down 60% from a year earlier.

Peugeot-Citroen's overall performance improved despite a loss of 325 million euros from the Chinese market, including 139 million euros of writedowns, reflecting a steady decline in sales in the world's largest auto market.

However, Carlos Tavares, chairman of the PSA group management committee, failed to reverse the decline of the Chinese business. Facts have proved that the models launched by the group in China do not adapt to the Chinese market and fail to attract customers.

Philippe de Rovira, global chief financial officer of PSA, said the group was working to cut capacity at DMC, a joint venture with local partner Dongfeng Motor, possibly by renting out plant facilities.

At the beginning, in the glorious period of "high expectations and high goals", DPCA built four major vehicle factories in China, namely, DPCA I (production capacity of 300000 vehicles), No. 2 plant (production capacity of 150000 vehicles), and No. 3 plant (with a total production capacity of 300000 vehicles). The fourth plant (with a total capacity of 400000 vehicles) totaled 990000 vehicles. According to the current sales volume of DPCA, one factory is more than enough, while the other three factories are idle. In addition to shutting down the third factory in Wuhan, the fourth factory will also loan to Dongfeng Nissan.

Since July last year, DPCA has seen a year-on-year decline in sales for 12 consecutive months. Prior to that, DPCA's sales experienced a "cliff" decline from 700000 in 2015 to 250000 in 2018. Without economic base, there is no superstructure; without sales support, we can only choose to change measures to reduce costs.

In addition to the decline in sales, DPCA Group experienced many personnel adjustments last year, abolishing the positions of two commercial deputy general managers in the executive committee, and the responsible persons of Dongfeng Citroen and Dongfeng logo brands went directly to the executive committee to report to the new general manager of DPCA. I hope that through personnel adjustment, the company can quickly get out of the predicament. Since 2017, Shenlong has implemented six institutional reforms and carried out more than 10 personnel adjustments.

In order to "return to the track", Dongfeng Peugeot carried out drastic reform measures. According to DPCA's three-step strategic plan: gain a firm foothold in 2017, return to the track from 2018 to 2020, pursue excellence in 2021-2023, achieve sales of more than 700000 vehicles in 2020, achieve operating profit margins of more than 5%, and achieve the top 3 levels of quality in the industry.

According to the current product system, brand appeal and other factors, Dongfeng Peugeot, Dongfeng Citroen's so-called restorative growth, at least in about 3 years. Of course, you have to survive before you can develop. PSA has said many times that it will not give up the Chinese market.

As a result, an tie, member of the standing Committee of the Party Committee and Deputy General Manager of Dongfeng Automobile Group Co., Ltd., said that the reason for the weakness of DPCA was the company's lack of physical strength. There are three things that must be done to get out of the predicament: the first is to gain a firm foothold and seriously sort out the existing family background, existing process and existing business. Second, the most important thing is to make the Dragon management team aware of its problems. The third is the change in marketing.

However, judging from the current situation, Peugeot and Citroen have suffered setbacks in China, the slow pace of products and chaotic management, it is very difficult for DPCA to turn losses into profits in a short period of time, and the fate of DPCA is also very worrying.

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