Chang'an Auto to buy joint venture stake from parent

Forecast about profitability dim in short term

Chang'an Automobile Co, a Shenzhen-listed company under the Chang'an Automobile Group, will become the new partner of Chang'an PSA in the fourth quarter this year, Jiang Aiqun, a spokesman for the company, told reporters recently.

Previously, the Sino-French joint venture Chang'an PSA was a 50-50 venture between Chang'an Automobile Group and PSA Peugeot Citroen. According to a statement released by Chang'an Automobile Co on Dec 27 last year, the company will purchase the 50 percent stake in the joint venture currently held by the parent group at a price of more than 2 billion yuan.