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Compare and Contrast This with the Earlier Decision to Form the Joint Venture ‘Dongfeng Peugeot-Citroën Automobile

In: Business and Management

Submitted By didikwong
Words 1790
Pages 8
.Introduction:
Background of Peugeot and Dongfeng :
Peugeot is a major French car brand which is today part of PSA Peugeot Citroën. Peugeot's roots go back to bicycle manufacturing at the end of the 19th century. Its headquarters are located in Paris, avenue de la Grande Armée.
Dongfeng Motor Corporation is a Chinese state-owned automobile manufacturer formerly known as China's "second car factory." It’s headquartered in Wuhan, China. Production and assembly of passenger cars, trucks, cars and car parts are the main business of Dongfeng. Traditionally one of the "Big Three" Chinese automakers, it is currently in the top four along with Chang'an Motors, FAW Group, and SAIC Motor.

Collaboration background of Peugeot and Dongfeng:
China starts opening domestic market to the foreign countries for the trading market access for technology. Finally, China sets up the Open-door policy- the China’s automobile industry was to establish Dino-foreign joint ventures (JVs) with foreign automakers to access foreign capital and technology and develop indigenous Chinese partners into self-sustaining, independent players.
The purpose and the partnership of the collaboration:
Dongfeng Motor and French counterpart PSA Peugeot Citroen cooperate for developing new car, the main purpose is to meet the rapid growing demand in Southeast Asia. They aim at double production and selling within three years of time. The global partnership of these two companies would eventually pave the way for exports of the Chinese state group’s own vehicles to market beyond Asia

Rescue of the PSA Peugeot Citroen:
The background of economic downturn in Europe in 2009
The company reported a net loss of 1.161 billion euros in 2009, the triple loss of 363 million euros a year earlier. In view of this, the company announced to slash 3550 jobs in order to struggle the economic crisis.
The future…...

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