China’s Changan Automobile Group is selling its 50 percent stake in a car venture with PSA Peugeot Citroen to its listed unit, Chongqing Changan Automobile, sources with direct knowledge of the matter said, in a sale worth 2 billion yuan (US$320 million).
An executive at the Chinese parent company said the move was aimed at streamlining its business and the group’s relationship with the French car maker remains unchanged. He declined to be identified because he is not allowed to talk to the media.
The value of the transaction was released in a statement to a property exchange.
PSA Peugeot manufactures Citroen’s upscale DS models through the venture with Changan, which has an annual production capacity of 200,000 vehicles. The French automaker also has a partnership with Dongfeng Motor Group.
China’s luxury car market is dominated by BMW, Daimler AG’s Mercedes-Benz and Audi AG.
A Peugeot spokeswoman in China said the shift in ownership will not affect its operation. Media relations officials at Changan could not be reached for comment.