PSA-Dongfeng Launches Production of Local Brand in China

PSA Peugeot Citroen's China venture with Dongfeng Motor Corp. has begun making the domestically branded Aeolus L60 sedan at its factory in Wuhan, China, Automotive News notes.

The midsize car rides on PSA's PF2 chassis, which also carries the Citroen C4 and Peugeot 408 sedans. Dongfeng-PSA says it will add at least one more Aeolus model per year, beginning early next year.

The new line will be sold in China through Dongfeng's Aeolus-specific dealer network. The venture has not indicated its sales targets.

Dongfeng and PSA have partnered in China for more than 20 years and currently produce cars in three factories in the country. Last year Dongfeng spent €800 million to acquire a 14% stake in PSA.