Earlier this week, Dongfeng Peugeot Citroën's factory in Xiangyang, Hubei announced its new T STT core powertrain technology. The new technology will play an important part in the joint venture's new E Power Strategy. The new 'T' and 'STT' engine technology will be equipped on Dongfeng Peugeot Citroën vehicles powered by 1.6 L CVVT, 1.8 L CVVT, 1.2 L THP, 1.6 L THP and 1.8 L THP engines.
Dongfeng Peugeot Citroën President Qiu Xiandong made an announcement recently at the joint venture's factory in Xianyang, Hubei, 21st Century Observer News reported today. Mr. Qiu stated that the joint venture's current strategy has shown success and that the it is currently formulating the next stage of its partnership.
According to statistics, Dongfeng Peugeot Citroën's sales last year exceeded 550,000 vehicles. The figure represents year-on-year growth of 25 percent. This year, a total of 400,000 Dongfeng Peugeot Citroën vehicles have been sold from January to July, equivalent to year-on-year growth of 27 percent. Lyu Haitao, vice president of the JV, also revealed that the new Citroën C5 and Dongfeng Peugeot 408 will be powered by T STT technology. Over the next two years, the JV's entire product line will be powered by T STT technology.
In 2012, Dongfeng Peugeot Citroën began upgrading its powertrain assembly line. The Xianyang factory produces six different engine types taking advantage of STT Micro Hybrid technology. The factory played a crucial role in the JV's so-called 'e-power strategy'.
Despite strong sales, Dongfeng Peugeot Citroën is suffering from the problem of insufficient production capacity. While Mr. Lyu was unwilling to confirm whether or not limited production capacity has hindered the JV's sales performance, he did admit that its factories have been working at full potential to keep up with demand. According to reports, the JV manufactures 2,600 automobiles and 3,000 engines daily. Its third factory in Wuhan, Hubei reportedly manufactured 44 vehicles every hour last July. That specific factory's annual production capacity for this year is expected to exceed 220,000 vehicles.
Ever since Dongfeng Group acquired a share in PSA this March, the two parties have been intensifying their cooperation in domestic engine manufacture. According to sources close to the matter, Dongfeng has sent six teams to negotiate with PSA on individual projects, including technology R&D and introduction of new technology. The projects will play a role in helping bringing micro hybrid, plug-in hybrid and pure electric models to the country.
Dongfeng Peugeot Citroën has increased its sales target for this year from 650,000 vehicles to 700,000 vehicles. President Qiu Xiandong revealed that the JV's sales in 2015 are expected to exceed 800,000 vehicles. That amount is expected to reach 1 million in 2017 and 1.5 million in 2020. While increasing its sales, the JV will also aim to broaden the usage of its new T STT technology; the JV's total emissions next year are expected to be over 20 percent less when compared with 2012's emissions./
Dongfeng Peugeot Citroën's Xianyang factory also announced its new T STT core powertrain line, including 2.3 L CVVT, 2.0 L CVVT, 1.8 L CVVT, 1.6 L CVVT, 1.8 THP, 1.6 THP and 1.2 THP engines. The JV hopes to take advantage of the fondness Chinese consumers have for new technology and products.
Dongfeng Peugeot Citroën has seen its sales increase dramatically over the last few years. In 2012, the JV sold a total of 440,000 vehicles. That figure increased to 550,000 vehicles the following year. The JV's sales target for this year is set at 600,000 vehicles./
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