PSA Peugeot Citroën and Dongfeng Group (DFG) entered their strategic partnership in March 2014. Key elements of the initial agreement were a project to develop jointly a common B- and C-segment global platform and to create a joint R&D center based in Shanghai dedicated to developing products and technologies for fast-growing Asian markets.

The new CMP will become PSA Peugeot Citroën and DFG’s new generation platform for B and C segments. The project originally called for capital expenditure of €200 million (US$228 million), of which 60% will be committed by PSA and 40% by DFG. A liaison team of DFG engineers will be located in Vélizy, within the main project team.

PSA Group and DFM also signed a framework Human Resources agreement designed to increase synergies to develop talent internationally.

In practical terms, the agreement will provide for temporary employee exchanges between operational teams in the fields of Research & Development, Marketing, Manufacturing, Finance and Human Resources. Best practices will also be shared in each area of HR to identify potential areas of cooperation.

At the ceremony, Carlos Tavares, Chairman of PSA Group's Managing Board, emphasized the effectiveness of the collaboration between the PSA and DFM teams and the importance of building on its synergies through talent sharing.

The future e-CMP platform is a key milestone in our partnership with Dongfeng. It will speed up the worldwide development of both of our groups, while helping us to reach the strict carbon objective set for 2020.

—Carlos Tavares

The new agreements are in support of the new 5A+ medium-term plan for Dongfeng Peugeot Citroën Automobile (DPCA). The plan has three strategic focuses:

• Significantly to increase customer satisfaction with products and services, with the aim of moving into the top 3 ranking in the industry by 2018 and becoming Nº1 in 2020.

• Generate revenue in excess of RMB 100 billion (US$15.4 billion) by 2020.

• To ensure profitable, sustainable growth underpinned by productivity gains of 30% by 2020.