PARIS/BEIJING — PSA Group and Chongqing Changan Automotive are preparing to sell their stakes in a Chinese joint venture that builds cars for PSA’s DS upscale brand.
PSA is looking to sell out of the venture, a spokesman said on Thursday. The company said it plans to continue sell DS cars in China, without giving further details of how.
Changan had already signaled in regulatory filings in early November that it was seeking a buyer for its half of the 50-50 venture.
The tie-up set up in 2011 and has struggled with falling DS sales.
“The two partners plan to sell their stakes in their joint venture,” the PSA spokesman said. “That does not change anything regarding DS’s presence and development in China. A new strategic plan will be presented in the coming weeks or months.”
The partnership builds DS cars in the south China city of Shenzhen. Its joint factory operates well below its 200,000-unit annual capacity.
Annual sales of Changan PSA cars have shrunk from around 23,000 in 2014 to about 3,900 in 2018, according to the China Passenger Car Alliance, a Shanghai-based consultancy.
No mention was made by PSA or Changan of potential buyers of their stakes.
According to the latest Changan regulatory filing from Nov. 29, it is seeking a floor price of 1.63 billion yuan ($232 million) for its stake in the joint venture.
PSA has a second, larger joint venture in China with Dongfeng Motor.
Automotive News China contributed to this report