PARIS: Global carmaker Stellantis said Thursday it has sold three factories it held jointly with Dongfeng Motors to the Chinese manufacturer as it continues its withdrawal from the country.
The joint venture Dongfeng Peugeot Citroen Automobile (DPCA) operated factories in Wuhan, Chengdu and Xiangyang.
Dongfeng will buy these factories “to pursue the manufacturing of Peugeot and Citroen models in addition to their own models and managing the Peugeot and Citroen brands sales in China,” Stellantis said in a statement, confirming information reported by financial news agency Bloomberg.
Bloomberg estimated the value of the transaction at 1.7 billion yuan (US$234 million).
“This move is another significant step towards our ‘foreign brands’ asset light strategy in China,” Stellantis said.
Stellantis has had trouble penetrating the Chinese market, with a joint venture with Guangzhou Automobile Group filing for bankruptcy last year.