PSA, Dongfeng Plan Fourth Car Plant in China

PSA Peugeot Citroen and its 14% owner Dongfeng Motor Corp. intend to open a new auto plant in Chengdu, China, in late 2016 that eventually will produce as many as 300,000 vehicles per year.

The new factory will make SUVs and crossover vehicles to sell in China under the Citroen, Peugeot and Fengshen brands, according to the companies.

The factory joins three existing facilities operated by the partners in Wuhan that can produce a combined 750,000 vehicles annually.

Dongfeng and PSA target sales of 650,000 vehicles in China this year, domestic capacity of 1 million units in 2016 and annual volume of 1.5 million vehicles by 2020.