DPCA may purchase PSA China technical center

The progress for Dongfeng Automobile to become a shareholder of PSA may begin from China.

At present, relevant staff in DPCA told reporter, Dongfeng Automobile was negotiating with PSA on the purchase of technical center in Shanghai. He added, "It will be very helpful for DPCA to get hold of core technology of PSA if this purchase proceeds.

Now this purchase is still in negotiation. Due to lack of capital, PSA may need a good price so there must be bargaining and we would get the result at the beginning of next year." According to public information, the technical center of PSA in Shanghai was put into use in Sept 2008, whose responsibility was to design model, parts and mould aiming at Chinese customers' feature and to do R&D work in the field of new energy model.

This center has cooperative ties with DPCA technical center. The relevant staff also said, "If the technical center was merged into DPCA, the localization R&D ability would be upgraded indeed." Besides, according to foreign media, Dongfeng will purchase 17.6 percent stock of PCA and develop southeast Asia market together.