(Yicai Global) Oct. 31 -- State-owned Changan Automobile plans to sell its half of a foreign joint venture that ran up losses of CNY4.9 billion (USD696 million) in the past six years.
The Chongqing-based automaker did not reveal the sale price or the buyer in its filing with the Chongqing United Assets and Equity Exchange. The transfer will be listed on the exchange on Nov. 22 after the period of pre-disclosure ends, a company insider told Yicai Global.
Owned with French car and motorcycle manufacturer Groupe PSA, Changan PSA Automobiles had CNY6 billion of liabilities against CNY7.2 billion of assets in the first three quarters of this year, according to the filing. The Shenzhen-based JV sold just 2,000 vehicles in the first nine months of this year and only 3,900 in 2018. Over the past seven years, annual sales have not climbed above 24,600.
"We're grateful to Changan Automobile for their support over the past eight years," Group PSA's Asia-Pacific unit said.
Set up in 2011, Changan PSA focuses on the production and sale of its own DS brand of passenger cars.
"We also want to make it clear that the DS brand will remain in China and be vigorously developed," the unit added. "It will not withdraw from China and will adopt a new development strategy."
Shares of Changan Automobile [SHE:000625] rose 0.3 percent today to close at CNY7.16 (USD1.02) each.