Saturday, October 20, 2007

Peugeot-Citroen To Make New C5 Sedan In China

LE BOURGET, France -(Dow Jones)- PSA Peugeot-Citroen (12150.FR) will assemble its new Citroen C5 sedan in China as well as in France, the company said at a press event to present the vehicle that will be targeted at fleet operators and executives.
Vincent Besson, product manager for the Citroen brand, said it will be the first time that Peugeot-Citroen will start manufacturing a vehicle in China so soon after its launch.
The car, which will be launched commercially early next year in Europe, will be made at Peugeot-Citroen's plant at Wuhan.
Peugeot-Citroen operates in China through DongFeng Peugeot Citroën Automobiles, a joint venture set up with Dongfeng Motor Group Ltd (0489.HK).
The plant at Wuhan was designed to produce 150,000 vehicles a year, but capacity is now being doubled with a view to reaching 300,000 vehicles by 2008.
The new C5 will be competing head-on in a very tough market segment with cars such as Volkswagen AG's (VOW.XE) Passat, Renault SA's (13190.FR) new Laguna that went on sale this month, the Audi (NSU.XE) A4 and Ford Motor Co's (F) Mondeo, as well as the 407 made by Citroen's sister brand Peugeot.
Besson said Citroen is targeting worldwide annual sales for the C5 of 150,000, a figure that's greater than the best annual total for the model that it's replacing.



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