PSA, Dongfeng Will Co-Develop Small-Car Platform for China

PSA Peugeot Citroen and Chinese partner Dongfeng Motor Group are spending $216 million to create a new small-car platform they will use to carry their next-generation B- and C-segment vehicles models.

The so-called "common modular platform" will become the primary chassis for Citroen, DS, Peugeot and Dongfeng brands. The partners also will open a tech center in Shanghai to develop Asia-specific products and technologies.

PSA will contribute 60% of the total investment in the platform program. The two companies hope to multiply their sales in China to 1.5 million units by 2020 from a targeted 800,000 in 2015.