Following Chang’an Automobile, Peugeot Citroen Group (PSA) is also selling a 50% stake in Chang’an Logo Citroen Automobile Co., Ltd. (Changan PSA). Recently, according to domestic media reports, on the day PSA announced plans to sell 50% of Chang’an PSA, a PSA spokesman confirmed that China’s Baoneng Group is one of the potential buyers of 50% of Chang’an PSA.
Earlier, Changan Automobile has also announced that the company plans to transfer its joint venture subsidiary Chang’an Peugeot Citroen Automobile Co. , Ltd. 50% of the shares. The company is seeking to sell its 50 per cent stake in Chang’an PSA at a base price of Rmb1.63bn, according to the latest documents submitted by Chang’an to regulators on November 29.
Public information shows that The Baoneng Group was founded in 2000 with a registered capital of 300 million yuan, with Yao Zhenhua as its sole shareholder. In 2017, Baoneng Group acquired a 51% stake in Qoco for 6.63 billion yuan and obtained the production qualification of Qoco Motor Vehicles. It is reported that The Baoeng Group in Guangzhou, Hangzhou, Kunming, Shaanxi, Guiyang and other places to establish new energy vehicle production base, production capacity planning more than 2.3 million vehicles.
As for why the Company bought PSA, perhaps only Baoneng knows. But according to Yao Zhenhua’s plan, the target is to generate more than half of the group’s revenue by 2027, and the previously acquired Viewothe adry is clearly not meeting The Company’s requirements.
It is understood that Chang’an PSA was formally established in November 2011. The parent company is Changan Automobile and France’s PSA Group, each with a 50% stake. Among them, Changan PSA is mainly responsible for the production of luxury car brand DS series models.
However, Chang’an PSA sales have been less than ideal. The DS brand had planned to achieve a target sales of 100,000 vehicles in China in 2014, but that year’s sales were only 23,000 units, far short of expectations. In the years that followed, the DS brand’s performance was also unsatisfactory.
Sales continued to decline, resulting in long-term losses for Chang’an PSA. Chang’an PSA has lost nearly $700 million over the past six years.