WUHAN, China -- PSA/Peugeot-Citroen SA is evaluating 15 components at its sourcing office in Shanghai for export to manufacturing operations worldwide.
The company declined to reveal specific parts, but they are only the beginning of what could turn into a flood of exports, says PSA CEO Jean-Martin Folz.
"It is a rather long process, sourcing from China. There are issues of supply chain, quality control and payment issues. But we are determined to increase our sourcing from China," he told Automotive News.
PSA already exports alloy wheels and tweeters from China to plants in Europe.
Folz was in China for the launch of the Peugeot 206, a small hatchback. The 206 is the second Peugeot model, along with the 307, to be assembled at Dongfeng Peugeot Citroen Automobile Co., a 50-50 joint venture with Dongfeng Motor Corp.
The joint venture, which also assembled Citroen models, exported some crankshafts to Europe last year because of excess capacity, said Folz.
PSA in China may export more parts because models assembled at the joint venture share common platforms -- and components -- with PSA models worldwide.
And the Peugeot models assembled in China have high local content, reflecting an ability to find -- or develop -- good local suppliers. Seventy percent of the Peugeot 307's parts are bought locally, up from 50 percent when it was launched in China in mid-2004, says Alexis Vannier, PSA's China spokesman.
He says the new 206 already has 75 percent local content.
You may e-mail Alysha Webb at [email protected]