CHONGQING – China Chang’an Automobile Group (Chang’an) is to sell its 50 percent stake in Chang’an PSA Automobile Co., Ltd. (CAPSA), a joint venture with PSA Peugeot Citroën, to its listed unit, Chang’an Automobile Corp., for ¥2 billion ($321 million), according to a notice published by the Chongqing United Assets & Equity Exchange on November 28.
The assignee is required to be a domestic auto enterprise which is registered in China with a capital not less than ¥3.5 billion and has survived legally for more than 15 years with annual return on equity exceeding 6 percent from 2009 to 2011.
With a registered capital of ¥4 billion, CAPSA was established on November 16, 2011 as a 50:50 JV with initial investment of ¥8.4 billion, making it one of the largest foreign-invested vehicle JVs in China. The first phase of the Shenzhen base of CAPSA has an annual production capacity of 200,000 vehicles and engines. Models under Citroën’s high-end brand DS are expected to go into production in July 2013. CAPSA has already begun selling imported DS models including the DS3, DS4 and DS5.