PARIS -- PSA Group and Changan Automobile will end their struggling joint venture in China that builds and sells cars from PSA's upscale DS brand. PSA will continue to produce and sell DS cars in China, a PSA spokesman said on Monday.
"We would like to thank Changan for their support over the past eight years and confirm that DS brand will continue its presence and development in China," he said in a statement.
PSA has a second, larger joint venture in China with Dongfeng Motor.
A report in Yicai Global, a Chinese media site, said that Changan is seeking to sell its half of the venture, which it said had lost almost $700 million in the last six years, citing a filing with the Chongqing United Assets and Equity Exchange.
The assets will be listed on Nov. 22, according to the article.
The PSA spokesman said the company would not give further details on the plan to dissolve the joint venture.
"DS Brand will deploy a new strategic approach to develop our business in this strategic market," the spokesman said. "PSA Group is fully committed to China."
Sales of PSA vehicles have fallen sharply in China, from more than 700,000 in 2014 to just 94,000 in the first nine months of this year, a 56 percent decrease. DS sold just 311 vehicles in China and Southeast Asia in the third quarter.
Changan and PSA invested 500 million euros in 2017 to bolster the joint venture, which is known as CAPSA, including efforts to boost utilization rates at their factory in Chongqing, which has an annual capacity of 200,000 vehicles, but has produced barely one-tenth of that figure in recent years.