Peugeot wants parts sector shake-up

PSA Peugeot Citroen has called on the Chinese government to merge the thousands of China's small auto component makers to increase quality, the Financial Times said. The French carmaker is concerned that the proliferation of small suppliers has prevented locally produced parts reaching international standards. Peugeot is currently in final negotiations with Dongfeng Motor, China's third largest motor manufacturer, to expand their joint venture plant in Wuhan, Hubei province. It hopes to add more Peugeot-branded cars to the Fukang range and the Peugeot Xsara Picasso that it currently makes. Dongfeng's recent agreement with Japan's Nissan Motors to inject its motor assets into a new joint venture would not affect the deal, according to the report, and nor would a similar project with Toyota.