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Report: Peugeot, Dongfeng to restructure JV

Peugeot SA and its Chinese partner Dongfeng Motor Group Co. Ltd. agreed to restructure their joint venture in an effort to cut costs and increase vehicle sales, Reuters reported Sept. 5, citing a Peugeot social media post in China.

Dongfeng Peugeot Citroen Automobile Co. Ltd. plans to lower its break-even mark to less than 180,000 vehicles this year and further slash it to less than 150,000 units between 2020 and 2021, the report said.

The Wuhan, China-based joint venture will also begin to consolidate manufacturing resources, dispose of idle assets, improve efficiency and launch more models in the country, the report said.

The companies aim to boost sales to about 250,000 units between 2020 and 2021, and 400,000 units by 2025.

In August it was reported that Dongfeng was considering options for its $2.5 billion stake in Peugeot parent Groupe PSA, including a potential sale. Peugeot and Dongfeng also agreed to close two of their four plants in the country, reducing jobs to 4,000 from 8,000 over three years.