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Guangzhou Peugeot Automobile Company

Controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 1997

    Guangzhou Peugeot loses nearly RMB 3 billion; Sino-French JV collapses and Peugeot exits China

    Guangzhou Peugeot Automobile Co. was established as a joint venture between Guangzhou Automobile Factory and France's Peugeot, with the Peugeot 505 as its main model. Because the models had not been updated for years, had many faults, high parts prices, low localization rates and high imported-parts costs, sales continued to decline, and by 1997 cumulative losses reached about RMB 2.96 billion. Peugeot was unwilling to add investment, conflicts intensified and the joint venture was terminated; Peugeot withdrew, making it a famous failure in the history of Chinese auto joint ventures, and Honda later took over. Status: media reports. Entity involved: Guangzhou Peugeot Automobile Co. Scope: Guangzhou Peugeot joint venture project.

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