PSA Peugeot Citroën has signed a memorandum of understanding with Chinese automaker Hafei. The deal is aimed at jointly producing small multipurpose vehicles for the Chinese domestic market.
State-owned Hafei is based in Harbin, in Northern China, and currently builds a modest array of vehicles, some based on Mitsubishi platforms and technology. Unlike many of its competitors, Hafei until now has had no major joint venture with any foreign automaker.
The talks with PSA are expected to culminate in a joint venture to build compact MPVs that seat fewer than 10 passengers. The mini-MPVs will be assembled at Hafei's southern plant in Shenzhen and will compete locally with similar models from Chang'an and SAIC-GM-Wuling, among others. They will carry Peugeot, Citroën and Hafei badges and will be assembled at an initial annual rate of 100,000 units.
PSA was one of the first western automakers to enter China in the early 1980s. After its joint venture in Guangzhou failed, it established what has evolved into a long-term relationship with Dongfeng. The partners build a variety of Peugeot and Citroën models for the China market, with production last year topping 200,000 units.
After a few teaser shots, Peugeot has now revealed the new 308 hatchback in full. It will be officially introduced at the Frankfurt auto show in September and will go on sale in Western Europe immediately afterward.
There's a lot resting on the shoulders of this newcomer. More than 3 million units were sold of the outgoing 307, which this new model replaces. The 308 makes its debut amid increasingly threatening competition from European, Japanese and Korean cars like the new Kia cee'd.
Peugeot played it safe with the 308's styling, which is sleeker for better aerodynamics and fuel economy. The front end features the now-familiar Peugeot gaping-mouth grille and catlike headlights. Interior quality is said to be improved, and there'll be more space for passengers — and their stuff: Cargo capacity rises to 49.3 cubic feet when the rear seats are folded.
The long list of available engines includes a 95-horsepower 1.4-liter and a 1.6-liter without turbo (120 hp) and with turbo (150 hp). Diesel options include a 1.6-liter direct-injection unit with either 90 or 109 hp and a 2.0-liter version with 136 hp. The latter engine will have an automatic-transmission option. Amenities include seven airbags, a lane-departure warning system, bi-xenon headlamps, panoramic roof and a two-zone climate system.
Other body styles are coming, including a three-door hatchback, a wagon and a coupe-convertible. A minivan version called the 3008 is also rumored to be in the cards. Prices for the new model have not been announced.