PSA Peugeot-Citroen and Chinese car-maker Hafei this week signed a memorandum of understanding to begin a feasibility study for a new joint-venture to build small people-movers for the Chinese market.
If the project goes ahead, the vehicles would be produced at Hafei’s plant in southern city of Shenzhen. It is expected that 100,000 of the 10-seater vans would be produced each year.
PSA Peugeot-Citroen already has a presence in China and currently assembles cars in a joint-venture with Dongfeng Motor, China’s third-largest car-maker.