Cracking the burgeoning Chinese automobile market is a challenge that nearly every automaker in the world is currently grappling with. Among the myriad reasons why the Chinese nut is a tough one to crack is that the government has set strict regulations and laws that must be met before it will approve of any automaker doing business within its borders.
For instance, no foreign automaker is allowed access into the country without first partnering up with a local manufacturer from China. Naturally, that means sharing a great deal of resources and technology – and that presents a big problem with you're dealing with cutting-edge products that you've spent a ton of time and money developing.
PSA Peugeot Citroën is the latest automaker to express concerns with the notion that its intellectual property must be handed over to its Chinese partners, Dongfeng Motor Group and Changan Automotive. Problem is, to sell in China, Hybrid4 technology must also be in the hands of Dongfeng and Changan, which is something PSA isn't keen on. "The Chinese government will have to reconsider its position," according to PSA Chief Financial Officer Frederic Saint Geours. Sounds unlikely, but we'll see.