The reinforced partnership will give the joint venture additional resources to speed its growth in the world’s largest market. The carmakers are looking for DPCA to achieve a 5% share of the Chinese market by 2015.

The new initiatives will step up the product plan, with the launch of at least one new vehicle per year and per brand, to give a total of 12 new DPCA models over the next five years. This will include a model in the fast-growing SUV segment, which accounts for 9% of the market, a 50% year-on-year increase.

The carmakers are also implementing a clean vehicle plan and a revitalised engine line-up. The DPCA engine offering will be totally renewed over the next five years, with the launch of six new engines delivering between 60kW and 150kW of power. Stop & Start vehicles will be launched in 2011, to be followed by a full hybrid line-up.

Production capacity will also be expanded through a third automobile production plant. With an initial capacity of 150,000 vehicles, the facility will be located in Wuhan to produce midrange and lower midrange vehicles alongside the Wuhan 1 plant, which is near full capacity. Scheduled to come on stream in 2013, the plant is intended to increase DPCA’s total output from 450,000 vehicles a year today to 750,000 in 2015.

Marketing and distribution will also be strengthened and by 2012, each brand will have dealerships in China’s 300 largest cities backed by an additional network of several hundred agents. PSA Peugeot Citroen added that it is studying the possibility of exporting part of DPCA’s production (assembled vehicles and CKD units) to other countries in the region.

The companies will also look to introduce a more effective governance system.