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by Matt Brogan

Due to the current economic difficulties faced both in and outside of China, PSA/Peugeot Citroen has postponed development and production of a new minicar based on the Citroen C1 and Peugeot 107.

Sources at Tier 1 global suppliers said they had previously received requests for quotations and requests for information for producing a new minicar to be called the A5. Now, however, they tell us the project has been put on hold.

The original intention was for PSA to develop the A5 for both Chinese domestic sale as well as export.

Through its joint venture with Dongfeng Motor Co., the French car manufacturer now runs two plants in Wuhan, China, with the A5 expected to have been built at a new third plant.

Local government reports say an area of land with 1.6 million square meters has been cleared for construction of a new manufacturing plant.

PSA currently produces five Citroen models and three Peugeot models in China. They include the Citroen Elysee and C-Triomphe sedans, the C-Quatre and Xsara Picasso hatchbacks, the C2 small hatchback, the Peugeot 307 sedan and its hatchback version, and the small hatchback and sedan versions of 206 and 207.




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