Link to translation : {http://bit.ly/1g7ESCO} Link to french article : {http://bit.ly/KSFy0M}
A growing market and credits against virtually limitless technology: this is the deal with the Chinese Dongfeng.
In reality, this irruption of the State intended to politically counter the Chinese presence. "The major event, one that makes sense and has a promising future - or future setbacks - is, of course, the arrival of Dongfeng capital of the Second European automotive group," said a consultant.
The previous Volvo
The only precedent was the acquisition of Volvo by Geely in 2011. Two junior partners, while Dongfeng Peugeot Citroen and each produce nearly 3 million vehicles per year. Together, they will be located near world leaders. "Behind in technology, Dongfeng will not bring us all another manufacturer," pleaded in vain Thierry Peugeot. An operational leader Peugeot is euphoric: "This alliance is further good news that will allow us to develop pronto, especially in China and the countries of Southeast Asia."
But it is the Chinese market - the world's first - which is referred as for Volvo China now focused three-quarters of global growth in the Swedish manufacturer! Peugeot Citroën, which has decided to build a fourth joint factory installed with Dongfeng and Changan, the other partner capacity will soon reach 900,000 cars, while in French factories produce more than 1 million. Everything suggests that, within two years, the most important of French production center will be located in China.
In addition to the € 800 million capital What will Dongfeng, the main interest of this agreement, for the French, will access to Chinese bank financing. "Volvo is a precedent case lighting, explains Jean-François Dufour, director of China-Analysis. Geely Acquired in 2010 by 1.1 billion euros, Swedish has since received € 1.5 billion Chinese funds additional. " China Development Bank has ended its previous loans and credits granted to ten years, Volvo releasing any financial pressure. The banks be as generous Peugeot Citroën, while Dongfeng aims to remain a minority? Dufour cites the case of Energias de Portugal, which enjoys considerable loans, while the Chinese electricity producer took only 21% of the capital.
Technology transfer
On long-term industrial projects, Chinese banks are orders. Associated with the presence in the capital of Dongfeng these loans, especially if China becomes the only creditor, give the Chinese government a huge weight, although higher than the Peugeot family and the French State. Should we fear, as Marine Le Pen and Jean-Luc Mélenchon, among other things, massive relocations? "It is an analysis of another time, says Jean-François Dufour. Only access to future technologies interested in China, regarding Volvo has invested in research in Sweden ..."
Thus, with the technology of Peugeot, Dongfeng wants to skip a step to industrialize a project car Hybrid Air, which combines a small internal combustion engine to an energy storage using compressed air. While access to electricity technologies will be provided by Renault, which has signed a production agreement with Dongfeng same. The Chinese group, which propelled the Ministry of Industry one of its former executives, will be in a strong position to compete for partners, and accelerate technology transfer. Meanwhile, Peugeot Citroën can again dream of growth .