BEIJING, Oct 25 (Reuters) - PSA Peugeot signed a joint venture agreement with Chinese partner Dongfeng Motor Corp on Friday and said it will invest 625 million yuan ($75.5 million) in a partnership aimed at tapping the fast growing China market.
The deal formalises an agreement reached last November, details of which have taken almost a year to work out. The venture would eventually sell 300,000 cars per year, company executives told a news conference.
Dongfeng, one of China's top three car makers will invest another 375 million yuan in the joint venture, they said but gave no timeframe for the investment.
The French car-maker and Dongfeng currently make three models of cars in China. Peugeot already has a plan to produce up to 150,000 cars in China by 2004. ($1=8.277 Yuan)