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As an important content of the strategic alliance agreement reached after Dongfeng became a shareholder of PSA, on October 30th, Shenlong and PSA Peugeot Citroën Group (PSA) formally signed a total distribution agreement (China) for Peugeot and Citroen. According to the agreement, from January 1, 2015, Shenlong Automobile Co., Ltd. will become the exclusive import distributor of PSA Peugeot Citroën Peugeot brand and Citroen brand passenger vehicle in China.
This means that PSA's import vehicle business in China (excluding DS) will be transferred to Shenlong Motor Corporation. According to the plan, four imported models of the Peugeot 4008, Peugeot RCZ, Citroen C4Aircross and Citroen C4PICASSO will be sold in Dongfeng Citroen and Peugeot Peugeot outlets in 2015.
After most of the international brands have been put into production in China in recent years, the domestic joint venture companies have also begun to acquire the general agency rights of imported vehicles and have realized the integration of channels, such as Audi, Mercedes-Benz, Infiniti, Nissan, and Fiat. This approach is conducive to eliminating the internal friction of similar models of imported cars and domestic cars, and expanding the types of models sold by both dealers.
In the past, the Peugeot-branded and Citroen-branded imported car business in China was led by the PSA Peugeot Citroen Group's Asia Operations Department, and Shenlong’s dual-brand Dongfeng Peugeot and Dongfeng Citroen were sold on-site to sell imported cars.
According to Shenlong, the introduction of high-end passenger vehicle products through comprehensive acceptance of the imported vehicle business and its involvement in new business areas will help Shenlong to further enhance its own operational management capabilities. In addition, the realization of imported vehicles in joint ventures will also strengthen the existing sales channels of PSA Peugeot Citroen.
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