It is reported that PSA Peugeot Citroen and China Changan Automobile Group won approval to create a joint venture to manufacture and distribute cars. The new entity will begin by introducing the Peugeot Citroen DS series in China and will then develop its own brand.

PSA Peugeot Citroen and Changan Automobile Group signed a contract to establish the JV in July 2010. According to that contract, the two parties will initially invest CNY 8.4 billion and each will hold a 50% stake in the new company.

A Hong Kong source reported that the JV will be located in Baoan District, Shenzhen and will have an annual production capacity of 200,000 cars and 200,000 engines by 2012.

(Sourced from caijing.com.cn)