Changan PSA

Changan PSA, formally Changan PSA Automobiles Co., Ltd. and commonly known as CAPSA, was a Chinese-French automotive joint venture created by Changan Automobile and Groupe PSA. The two companies agreed in 2010 to establish a 50:50 venture focused on manufacturing and selling passenger cars for the Chinese market, and the project received final approval in 2011. The company was headquartered in Shenzhen and represented Groupe PSA's second automobile joint venture in China, following its partnership with Dongfeng for Peugeot and Citroën operations. The venture was established primarily to develop the DS brand in China. DS, Groupe PSA's premium automotive marque, was positioned above the group's mainstream Peugeot and Citroën products. Changan PSA built a new production facility in Shenzhen with reported annual capacity of approximately 200,000 vehicles. The plant was intended to support localized production, reduce reliance on imports, and provide DS with a stronger position in China's rapidly expanding premium-car market. Manufacturing began in 2014. The initial China-focused product program consisted of the DS 5, the DS 5LS, and the DS 6WR, all associated with the Shenzhen operation. These vehicles were introduced within a short period and gave DS a locally produced premium-car range spanning hatchback, sedan, and sport-utility-vehicle formats. The company also worked to establish a dedicated distribution network; contemporary reporting described approximately 80 DS stores covering around 60 major Chinese cities. DS sales in China reached about 26,000 vehicles in 2014, when the range included the DS 5, DS 5LS, and DS 6. China consequently became an important market for DS registrations globally. However, the venture was unable to sustain sufficient volume relative to its large production capacity and the competitive intensity of China's premium-vehicle sector. Production remained below capacity, while weak sales and broader operating difficulties limited the commercial performance of both the DS brand and the joint venture. In 2020, Changan Automobile and Groupe PSA agreed to transfer their respective interests in the venture to Baoneng Group. Changan PSA was subsequently dissolved and the restructured business was renamed Shenzhen Baoneng Motor. The transfer ended Changan PSA's role as the DS manufacturing and sales joint venture in China. Its history illustrates the difficulty of establishing a new premium automotive marque in China when brand recognition, distribution scale, product cadence, and production utilization do not develop together.

Changan PSA was formed as a 50:50 automobile joint venture between Changan Automobile of China and Groupe PSA of France. The partners reached an agreement in 2010 to create a business serving China's passenger-car market, and the project received final approval in 2011. The venture was Groupe PSA's second major automobile joint venture in China, after its existing cooperation with Dongfeng Peugeot-Citroën. The company's principal purpose was to manufacture and sell vehicles from DS Automobiles, Groupe PSA's premium brand. Rather than relying entirely on imported vehicles, the partners planned a dedicated Chinese production operation. A new manufacturing base was developed in Shenzhen with annual capacity reported at roughly 200,000 vehicles. The plant was intended to give DS localized production, a broader product offer, and a dedicated presence in China's premium-vehicle market. Production commenced in 2014. Changan PSA introduced several China-specific or China-oriented DS products in a concentrated launch period: the DS 5, DS 5LS, and DS 6WR. The range gave the brand coverage in several premium passenger-vehicle segments and was manufactured through the Shenzhen operation. The company simultaneously expanded a dedicated retail network, with contemporary material referring to about 80 DS stores in approximately 60 of China's largest cities. The early sales performance showed both the opportunity and the limitations of the strategy. DS sales in China reached around 26,000 vehicles in 2014, and China accounted for a substantially larger share of global DS registrations than it had in the early part of the decade. Nevertheless, the volume was insufficient to utilize the venture's production capacity effectively. The company faced persistent weak sales, intense competition from established premium brands, and the challenge of building recognition for DS as a separate marque in a crowded market. Production therefore remained well below the Shenzhen plant's designed capacity. The commercial difficulties continued despite the venture's localized products and retail expansion. Changan PSA's underperformance also reflected the difficulty of aligning a new premium brand's pricing, dealer economics, product range, and customer reputation with the expectations of the Chinese market. The available reference material does not identify individual executives or provide a detailed account of specific plant utilization, financial losses, or model-by-model sales beyond the reported 2014 figure. In 2020, Changan Automobile and Groupe PSA agreed to transfer their respective stakes in the joint venture to Baoneng Group. Changan PSA was dissolved in the restructuring, and the successor operation was renamed Shenzhen Baoneng Motor. This transaction ended the company's existence as the Changan-PSA vehicle manufacturing and sales venture. Its principal historical significance lies in its attempt to establish DS as a locally manufactured premium brand in China and in the eventual withdrawal of both original partners after the business failed to achieve sustainable sales relative to its production capacity.

• 2020

  Venture transferred to Baoneng

  [1]Changan PSAen.wikipedia.org

  Both original partners agreed to transfer their interests to Baoneng Group; Changan PSA was dissolved and the successor company was renamed Shenzhen Baoneng Motor.

• 2014

  Shenzhen production began

  [1]Changan PSAen.wikipedia.org

  Manufacturing started at the Shenzhen facility with the DS 5, DS 5LS, and DS 6WR among the initial locally produced models.

• 2014

  DS China sales reached approximately 26,000 units

  [1]Changan PSAen.wikipedia.org

  The DS brand recorded approximately 26,000 Chinese sales during the year as Changan PSA expanded its premium model and retail network.

• 2011

  Project approval and company establishment

  [1]Changan PSAen.wikipedia.org

  The joint-venture project received final approval, establishing the business later known as Changan PSA.

• 2010

  Changan and Groupe PSA agreed to create a joint venture

  [1]Changan PSAen.wikipedia.org

  The two automotive groups agreed to establish a 50:50 venture for passenger-vehicle manufacturing and sales in China.

Premium passenger-vehicle joint venture focused on locally produced DS Automobiles vehicles for the Chinese market.

• Premium hatchback · 2014

  DS 5

  The DS 5 was one of the first locally produced DS models associated with Changan PSA's Shenzhen manufacturing program. It served as a premium passenger-car offering and formed part of the initial Chinese DS range introduced when production began in 2014.

• Premium sedan · 2014

  DS 5LS

  The DS 5LS was a sedan developed for the Chinese market and produced through Changan PSA. It broadened the locally manufactured DS portfolio beyond the DS 5 and was part of the concentrated product rollout that supported the brand's early Chinese sales push.

• Premium sport utility vehicle · 2014

  DS 6WR

  The DS 6WR was a locally produced DS utility vehicle and one of the principal models introduced by Changan PSA in China. Its inclusion gave the joint venture a presence in the growing premium SUV segment alongside its hatchback and sedan products.

• Premium sport utility vehicle

  DS 7

  The DS 7 was associated with the later Chinese DS product portfolio and represented the brand's premium SUV offering. The available reference material identifies it as a flagship offering but does not provide sufficient detail to establish a specific Changan PSA production or launch date.

• 2019

  Source

Read more

• 2020

  Transferred the joint venture to BaonengM&A

  Background

  Persistent poor sales and operating difficulties left the original joint venture commercially unsustainable.

  Action taken

  Changan Automobile and Groupe PSA transferred their respective stakes to Baoneng Group and dissolved Changan PSA in the resulting restructuring.

  Aftermath

  The successor business was renamed Shenzhen Baoneng Motor, ending Changan PSA's operations under its original ownership and name.

  Source

• 2014

  Launched the initial locally produced DS rangeProduct launch

  Background

  Changan PSA needed a sufficiently broad premium portfolio to establish DS in China's competitive passenger-car market.

  Action taken

  The company began manufacturing and selling the DS 5, DS 5LS, and DS 6WR in China.

  Aftermath

  The models helped lift DS China sales to approximately 26,000 units in 2014, but overall demand remained inadequate relative to the production base's capacity.

  Source

• 2011

  Approved a dedicated DS manufacturing venture in ChinaStrategy

  Background

  Changan Automobile and Groupe PSA sought a localized platform for expanding the DS premium brand in China, following the creation agreement reached in 2010.

  Action taken

  The partners established a 50:50 joint venture with a new Shenzhen production base and a planned annual capacity of approximately 200,000 vehicles.

  Aftermath

  The facility began production in 2014, but later operated below capacity because DS sales did not reach sustainable levels.

  Source

• 2020-12-31

  Baoneng agreed to acquire Changan PSA[5]宝能同意收购长安PSA股权finance.sina.com.cn

  Reported: 2020-01-02

  Changan Automobile announced that it had signed an equity-transfer agreement with Qianhai Ruichi to transfer its 50% stake in Changan PSA for 1.63 billion yuan. Baoneng Automobile had also signed an agreement with PSA to acquire PSA’s other 50% stake in Changan PSA.

• 2020-01-01

  PSA agrees to transfer its 50% stake in Changan PSA to Baoneng[6]PSA同意将其持有的长安PSA 50%股份转让给宝能eeo.com.cn

  A PSA Asia-Pacific spokesperson told Economic Observer that PSA had signed an equity-transfer agreement with Baoneng to transfer its entire 50% stake in Changan PSA. The spokesperson did not disclose the transaction price.

• 2019-12-31

  Qianhai Ruizhi agrees to acquire Changan Auto's 50% stake in Changan PSA[6]PSA同意将其持有的长安PSA 50%股份转让给宝能eeo.com.cn

  Changan Automobile announced that it had signed an equity-transfer agreement with Qianhai Ruizhi to transfer its entire 50% stake in Changan PSA for 1.63 billion yuan. Qianhai Ruizhi is wholly owned by Baoneng Automobile. The source reports that Qianhai Ruizhi had paid 51% of the transfer price by December 30, 2019.

• 2019-12-30

  Baoneng affiliate to acquire Changan PSA shares[7]宝能旗下公司拟收购长安PSA股权finance.sina.com.cn

  Reported: 2019-12-31

  Changan Automobile signed an agreement to transfer its 50% stake in Changan PSA to Qianhai Ruizhi for 1.63 billion yuan; PSA also signed an agreement to transfer all of its Changan PSA shares to Qianhai Ruizhi. Qianhai Ruizhi is wholly owned by Baoneng Automobile.

• 2019-11-04

  Changan lists its 50% stake in Changan PSA for transfer[8]长安汽车挂牌转让长安PSA 50%股权finance.sina.com.cn

  Reported: 2019-11-04

  Changan Automobile listed its 50% stake in Changan PSA for transfer. The article reports that the listing was temporarily removed because internal approval had not been completed; it does not report a completed sale.

1. 1Changan PSAen.wikipedia.org
2. 2DS在华溃败巨亏，合资双方认赔退出、员工被“打包”转让宝能s.cyol.com
3. 3DS在华溃败巨亏，合资双方认赔退出、员工被“打包”转让宝能m.thepaper.cn
4. 4DS在华溃败巨亏，合资双方认赔退出、员工被“打包”转让宝能auto.gasgoo.com
5. 5宝能同意收购长安PSA股权finance.sina.com.cn
6. 6PSA同意将其持有的长安PSA 50%股份转让给宝能eeo.com.cn
7. 7宝能旗下公司拟收购长安PSA股权finance.sina.com.cn
8. 8长安汽车挂牌转让长安PSA 50%股权finance.sina.com.cn