PARIS -- PSA Group unveiled the DS 7 Crossback, a flagship crossover for its upscale DS brand that will be produced and sold in Europe and China.
The compact is a crucial launch for DS, which has struggled to gain a foothold since it was established in 2010 to challenge Audi, BMW and Mercedes-Benz.
PSA is emphasizing the DS 7 Crossback's luxury features and options, including five interior "ambiences" and materials and details "inspired by haute couture."
A company spokesman said the DS 7 Crossback will compete against vehicles such as the Audi Q3, BMW X1, Mercedes-Benz GLA and Range Rover Evoque.
A plant in Shenzhen will produce the vehicle for China.
PSA chief Carlos Tavares described the DS 7 Crossback as the first product in the second generation of DS vehicles. "I think it will be a cornerstone for the development of this brand," Tavares told analysts on Friday at a company news conference.
Tavares emphasized that PSA will be patient with DS. "On a premium brand we cannot rush," he said. "We need to do things right, things right on service, things right on brand new technology, things right on fit and finish, and things right on quality."
The DS name, which recalls Citroen's pioneering DS 19 from the mid-1950s, was revived in 2010 for the Citroen DS 3 subcompact hatchback.
The brand was officially rolled out in Europe in 2014, though it had been sold separately in China for several years before that.
In addition to the DS 3, the lineup includes the DS 4 compact car, the midsize DS 5 and, in China, the DS 6 midsize crossover.
Last year, DS sales fell 25 percent to 16,151 in Southeast Asia and China, where the brand is heavily marketed.