Peugeot 408

China\'s Dongfeng Motor and PSA Peugeot Citroen are exploring the Southeast Asian market. They will set up factories in countries such as Malaysia and Vietnam to produce new cars such as the Peugeot 408. Production in Malaysia has been officially confirmed, and the establishment of a factory in Vietnam is the latest report by foreign media.

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Expected to set up factory in Vietnam

Recently, Reuters and other foreign media reported that Dongfeng and PSA Peugeot-Citroen’s joint venture in China, Shenlong Motors, plans to build a joint venture in Vietnam. It is expected to begin construction of an assembly plant later this year and cooperate with the local Thaco Automobile Group in Vietnam. Thaco Group is already a partner of Peugeot Citroen in Vietnam. Both parties are putting into production the Peugeot 3008 at the plant in Chu Lai Open Economic Zone in the central part of Quang Nam Province, Vietnam.

Although the executives of Peugeot Citroen and Dongfeng Motor did not comment on relevant questions from foreign media regarding the above report, ASEAN/Southeast Asia is indeed an important direction for both parties to explore in the future.

On February 19, 2014, Dongfeng Motor and PSA Peugeot Citroen formed an alliance; on March 26, the two parties formally signed a cooperation agreement. Dongfeng spent 800 million euros to purchase 14% of the shares of Peugeot Citroen. The two parties launched strategic cooperation in three aspects, including enhancing their presence in China. Production and sales, construction of R&D centers, and establishment of joint ventures to enter Southeast Asia.

For the expansion plan in Southeast Asia, Peugeot Citroen and Dongfeng formed a new joint venture sales company to promote the sales growth of Peugeot, Citroen and Dongfeng Fengshen\'s own brands in Southeast Asia and other emerging markets.

The release of the report coincided with the new progress of the Shenlong Automobile project in Malaysia. Foreign media believe that in addition to Malaysia and Vietnam, Shenlong may find more "bases" to be developed in ASEAN in the future.

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Production of Peugeot 408 in Malaysia

The main model of Shenlong Automobile exported and put into production for the ASEAN market is the T93M, the new generation of Dongfeng Peugeot 408, and its partner in Malaysia is NAZA. A few days ago, Shenlong completed the unpacking verification of 5 sets of T93M\'s first batch of VRS (off-line pre-batch) at NAZA\'s Penang plant, declaring that T93M will soon enter the off-line pre-batch production stage in Malaysia.

T93 was put into production in Malaysia under the SKD (semi-bulk parts) mode, and it is expected to be officially put into production in October 2015, entering the production ramping plan. It can be sold in Malaysia and other ASEAN countries in the future.

Compared with the Peugeot 408 in China, the T93 in Malaysia not only changes the steering wheel position from left rudder to right rudder, but also has different body information. The relevant production management system is not compatible with T93C, and the system testing and modification cycle are limited; The work is reduced by 30% compared to the regular cycle, which also brings huge challenges to the organization and management of parts, and the delivery period and cost. By establishing DPCA/NAZA project regular meetings, T93M DPCA internal project regular meetings, and the application of new processes and new technologies, Shenlong Motors promoted the T93M project to start as planned.

Shenlong said that the T93M officially started the assembly of its first car in Malaysia on May 18 this year. The new car is expected to be exported to other ASEAN countries in the future.