What Parisian contract brings in industry analysis PSA will transfer technology


At 5 pm local time in Paris on March 26th, witnessed by the leaders of China and France, Dongfeng Group and the PSA Peugeot Citroën Group (PSA) signed a formal share purchase agreement to subscribe for 14% of Peugeot Citroen for 800 million euros . On the 28th, the two sides will also sign a global strategic alliance agreement in Beijing.

After the signing of the share subscription agreement and the global strategic alliance agreement, Dongfeng Group will acquire two seats in the PSA Supervisory Board. Xu Ping, chairman of Dongfeng Group, will serve as vice chairman of the PSA Supervisory Board and Liu Weidong, deputy general manager, will serve as chairman of the PSA Asia Business Development Committee.

Jointly built new sales company to expand Southeast Asian market Shenlong Company increased production to 1.5 million units in 6 years

As the core of the Dongfeng and PSA equity agreement, Dongfeng Company told this reporter that there are three aspects: First, to strengthen the strategic cooperation between the two sides in the R & D field, and apply the relevant technology platform integrated with PSA to the new Dongfeng passenger vehicle model. It is undoubtedly a great advantage for Dongfeng's own brands, but for domestic independent brands that have always pursued a “market-for-technology” initiative, this will be unprecedented.

The two parties will accelerate the development of the joint venture in Wuhan, China - Shenlong Automobile Co., Ltd., and increase its production and sales scale. By 2020, it will achieve an annual output of 1.5 million vehicles.

Secondly, the two sides set up joint ventures to establish new R&D centers and exert synergies on product technology and vehicle models. In this regard, Shenlong company insiders said that perhaps the PSA R&D center previously established in Shanghai will be merged with the R&D center of Shenlong Motor; the third is the establishment of a new sales company to export the models produced by Shenlong and other PSA products to exclude China. The Asia-Pacific region, including mainland China, including Southeast Asia, which is occupied by Japanese brands, will be the key purpose of this sales company.

According to an insider from the Dongfeng Group, from the perspective of the global strategic alliance agreement, the focus of cooperation between the two parties will remain focused on China and the Asia-Pacific region. “The Dongfeng Group, which is more familiar with the regional market in Southeast Asia and has the advantage of a channel, is bound to become this cooperation. In order to significantly increase its market share in China and the Asia-Pacific market, PSA also has to show greater sincerity to achieve synergies with Dongfeng Group at the R&D level and vehicle platform level.

Overseas analysts also believe that PSA Peugeot Citroen will not be further put into operation in France or other European regions in the near future. The group has already established a plan to lay off tens of thousands of people in the next three years, and it has closed its European company in Naesuouwa last year. Factories, "I don't think they need to add new spending cuts in addition to what has already been announced. After signing, they may focus on Asia."

Industry analysis PSA will transfer technology for funds Dongfeng passenger vehicle hopes to "leasing to sea"

For Dongfeng and PSA, the signing of a global strategic alliance agreement is not only a major program for PSA to use Dongfeng Resources to expand profitability in China and even in the Asia-Pacific region, but also an urgently needed resource for Dongfeng to develop its own independent brands – integrating PSA and Dongfeng’s R&D resources. PSA realizes the sharing of advantageous resources such as technology platforms. Obviously, Dongfeng’s positioning of this investment is not just a simple equity investment, but rather a service for its “grand autonomy” strategy. Therefore, “technology sharing is the premise” has become the bottom line for the Dongfeng decision-making layer to invest in shares.

The Dongfeng insider who signed the contract in Paris confirmed to the reporter that the technical sharing between Dongfeng and PSA is divided into two parts. Joint research and development of shared intellectual property rights does not require payment of technology transfer fees, and those with PSA intellectual property backgrounds need to pay.

Zhu Fushou, general manager of Dongfeng Motor, said in an interview earlier this week that Dongfeng’s primary task during the “Twelfth Five-Year Plan” period is to vigorously support Dongfeng’s own brand passenger cars. The collection of domestic and foreign vehicle-building resources and R&D experience has become a shortcut for Dongfeng to do “grand autonomy”. Prior to this, Dongfeng had developed "Dongfeng No. 1" using Peugeot's 508 model platform. Obviously, this time entering the main PSA is an excellent opportunity for Dongfeng to autonomously “send down the road”.

A car analyst said that Dongfeng hopes to tap PSA Group's advantages in R&D, technology and sales network to rapidly develop into an advanced car manufacturer. PSA Group's advanced power system, transmission system, safety precautions and emission system can help Dongfeng enhance the quality of its own-brand sedan. More importantly, Dongfeng Group hopes to gain experience in product planning, technology research, development, and management, which is often the focus of European and American car companies in external cooperation. In the critical situation that urgently needs funds to continue its life, PSA will have to make a certain degree of compromise and concessions. This is the best opportunity for Dongfeng Passenger Vehicle to “borrow a boat to the sea”.


Tail Pipe

Tail Pipes

The only visible part of the Exhaust System on a vehicle. This produces a final reduction in pressure, and sometimes used to enhance the appearance of the car. All of our Stainless Steel exhaust tips are manufactured from 100% 304 Stainless Steel. 304 Stainless Steel is the highest quality Stainless Steel and retains its high luster polish longer than any other material.

l Polished 304 Stainless Steel Tail Pipes

l Chromed Tips

l Black coated Tips

l Carbon Fiber Tail pipes

l Blue Plated tips

l Stacks

l Dual Tail pipes

l Tail Pipes With Single or Double Wall construction

l Square tips

l Dual outlet tips

Tail Pipe,Dual Tail Pipes,Muffler Tail Pipe,Exhaust Tail Pipe

JINING FAREAST LIANGFEI CONVERTER & MUFFLER CO. LTD , https://www.golbaltour.com