Gasgoo.com (Shanghai November 19) French manufacturer PSA Peugeot Citroën will finally be releasing concrete details about combining its network for domestically made vehicles with its sales and supply chains for imported vehicles. According to a report by the Beijing Times earlier this week, PSA, who has been eyeing the Chinese market for years now, has already decided on the fundamental structure of a combined production and sales network. It is currently holding discussing with its shareholders to iron out the specifics, with an official announcement expected soon.

"The shifting of managerial power is the reason why discussions have not been successful for several years," an unnamed source from the Dongfeng PSA joint venture said. According to the source, Dongfeng and PSA had held similar discussions regarding domestic manufacture many times in the past, but talks fell through because the former was unwilling to yield any control to its Chinese partner.

If the two networks are successfully combined, Dongfeng Peugeot dealers will be able to sell imported vehicles. Likewise, sales goals, market strategies and similar programs could be approved directly by the joint venture. Currently, dealers need to report to both Dongfeng Peugeot and PSA. It is clear to see then that combining the networks would limit PSA's overall say.