PSA may withdraw vehicles from China for intellectual property reasons

Posted on Saturday, 9 October 2010 , 11:10:08 byEmil

Filed under peugeot-chinapeugeot-new-craspeugeot-technologyPeugeotPeugeotTechnology

PSA may withdraw vehicles from China for intellectual property reasons

The Chinese auto market appears in the eyes of the car automakers as a big challenge which they are trying to face and defeat. This is because the Chinese government has developed over the years a set of strict regulations and laws that restrict in a way or another, the possibility of starting a business in this country. This is what happens when a foreign car producer must first sign a partnership with a local manufacturer and only after this stage, he will be able to access the country. It is somehow tricky as this condition forces producer to share aspects of their technology and resources and this can be unpleasant because these technological features take much time, effort and knowledge.
At the moment PSA Peugeot Citroen face such a difficult situation for they have to hand their intellectual property to the Chinese partners, represented by Dongfeng Motor Group and Changan Automotive.
In an official statement released to the press by the PSA Chief Financial Officer Frederic Saint Geours, the Chinese government is politely asked to reconsider this position, no matter how unpleasant this sounds.
It seems fair enough as the Chinese have not proved to be quite original, over the years, if you know what I mean.