Dongfeng Peugeot cuts prices

Dongfeng Peugeot Citroen announced it was cutting the price of its 307 model by RMB20,000 (US$2,400) in an effort to boost flagging sales. The JV between China's Dongfeng Motor Corp. and France's PSA said the discount would also apply to customers who had purchased a vehicle since June this year. Last month the company's Citroen unit said that it expected to miss its 2004 sales target of 124,000 units. In the first half of the year, it sold only 46,700 sedans, 5,500 units fewer than in the same period last year. Analysts say fierce competition between carmakers and the prospect of reduced import duties next year is leading many consumers to put off purchases in anticipation of further price cuts.