Chang'an to Sign JV Deal with PSA on June 9

Chang'an Automobile, one of China's biggest car makers said it will ink a deal on Friday with PSA Peugeot Citroen in France to set up a 50-50 joint venture.

Chang'an Automobile, one of China's biggest car makers said it will ink a deal on Friday with PSA Peugeot Citroen in France to set up a 50-50 joint venture.

"We have talked about everything concerned with the JV, and found solutions for 99 percent of the difficulties amongst the deal," Chairman of Changan Automobile Xu Liuping told Caijing reporters on Tuesday.

The deal will be inked on Friday, he said.

Changan Automobile and PSA had signed a letter of intent early in May for the creation of a JV in China to produce environmentally friendly light commercial vehicles and passenger cars.

The JV plant in Shenzhen is scheduled to produce 80,000 cars annually. The two parties agreed to increase its capacity and begin construction in late 2010.