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PSA Peugeot Citroen, Dongfeng to develop small-car platform

PSA Peugeot Citroen and China's Dongfeng Motor Group (DFG) will spend €200 million (RM783 million) on a joint project to develop a platform to manufacture small cars, the French company said ahead of a briefing today.

The two sides will also build a joint technology centre in Shanghai dedicated to developing cars for Asian markets.

"The new platform will enable PSA Peugeot Citroen and DFG to manufacture vehicles in their respective growth regions," it said in a statement, adding that using Dongfeng's supplier base would allow it to cut costs and compete regionally.

It said 60% of the expenditure would be committed by PSA, with the remaining 40% from Dongfeng. – Reuters, April 19, 2015.

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