© Reuters. FILE PHOTO: Carlos Tavares, CEO of PSA Group, speaks during the press conference on the annual results at their headquarters in Rueil-Malmaison near Paris
RUEIL-MALMAISON, France (Reuters) – Peugeot CEO Carlos Tavares said Friday that PSA and Fiat Chrysler (FCA) needed to review their strategy in China to increase sales after the merger between the two groups is complete.
PSA and FCA are hoping to complete a $ 50 billion merger in early 2021 to create the world's fourth largest automaker.
"We are in China to stay. We have to find a formula to be successful," said Tavares.
PSA's car sales in China fell 55% to 117,084 units in 2019 due to strong competition from local competitors. The country's manufacturing facility is tailored to produce 1 million cars a year.
FCA has a cooperation with the Guangzhou Automobile Group (GAC) (SS 🙂 in China, which has a 0.35% market share for passenger cars.
FCA Group vehicle sales in China declined from 163,000 in 2018 to 90,000 in 2019, according to the annual report.
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