PSA-Dongfeng Alliance Could Include Brazil, Russia

PSA Peugeot Citroen and China's Dongfeng Motor Group consider plans to expand sales in Asia as a starting point for a broader global strategy, according to Dongfeng Chairman Xu Ping.

He tells reporters in Beijing that the partners could expand into Brazil and Russia. Both are markets where PSA CEO Carlos Tavares has said the French company must strengthen its financial results.

PSA and Dongfeng have collaborated for 20 years in the China market, where they hope to triple combined sales of Dongfeng, Citroen and Peugeot brand vehicles to 1.5 million units by 2020. They plan to deepen joint product development and marketing under the €3 billion capitalization plan approved this week that will give Dongfeng and the French government 14% stakes in PSA.