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57-588: The first generation Dongfeng Rich is a pickup truck and a SUV based on the design of the Nissan D22 pickup truck due to the Dongfeng-Nissan joint venture using the Nissan F-Alpha platform. It is produced as a pickup and an SUV, which is essentially the pickup with a long roof bed cover. The diesel version is powered by a 2.5-liter turbo diesel engine mated to a 6-speed manual gearbox, producing

114-484: A joint venture with the government of Guangzhou, Guangzhou Peugeot Automobile Company , which built the Peugeot 505 and was defunct by 1997. The current Dongfeng Peugeot-Citroën comes from a second chance at market entrance for Citroën provided by 'Second Auto Works' (Dongfeng), in 1992. Realizing it lacked a consumer product line, state-owned vehicle maker Dongfeng Motor Corporation initially approached Toyota in

171-439: A 2.2 percent average ROA, while wholly owned and controlled affiliates in the U.S. only realized a 0.7 percent ROA." In European law , the term "joint venture" is an exclusive legal concept, better defined under the rules of company law . In France , the term "joint venture" is variously translated as "association d'entreprises", "entreprise conjointe", "coentreprise" or "entreprise commune". A JV can be brought about in

228-523: A 68kWh battery and a single 120kW/420Nm electric motor. A 5-door SUV bodystyle was also available as the Palazzo (Palasuo, 帕拉索). There are two engines available for the Rich 6. The 2.4-litre gasoline engine of the Rich 6 has a maximum power output of 158ps and peak torque of 230 Nm, mated to a 5-speed manual gearbox; the 2.5-litre turbo diesel engine of the Rich 6 has a maximum power output of 140 ps and

285-713: A JV aimed at defining standards or serving as an "industry utility" that provides a narrow set of services to industry participants. Some major joint ventures include United Launch Alliance , Vevo , Hulu , Virgin Media O2 , Penske Truck Leasing , and Owens-Corning . According to Gerard Baynham of Water Street Partners, there has been much negative press about joint ventures, but objective data indicate that they may actually outperform wholly owned and controlled affiliates . He writes, "A different narrative emerged from our recent analysis of U.S. Department of Commerce (DOC) data, collected from more than 20,000 entities. According to

342-526: A company. By its formation, the JV becomes a new entity with the implications that: On the receipt of the Certificate of Incorporation, a company can commence its business. This is a legal area and is fraught with difficulty as the laws of countries differ, particularly on the enforceability of "heads of" or shareholder agreements. For some legal reasons, it may be called a Memorandum of Understanding . It

399-484: A hindrance; at the very least to the development of Wuhan's own industrial cluster. As of 1997, DCAC counted amount its component suppliers 80% more Shanghai firms than those based in Wuhan, and in the early 2000s easily 50% of locally sourced parts continued to come from Shanghai. In 2002, the first Peugeot-branded product was introduced and the JV was renamed Dongfeng Peugeot-Citroën Automobile (DPCA). That same year saw

456-433: A maximum output of 140hp and 305N·m or torque. The petrol version is powered by a 2.4-liter gasoline engine, producing a maximum output of 139hp and 217N·m or torque mated to a 5-speed manual gearbox. The second generation Rich pickup is also based on the same Nissan platform as the first generation Rich with the powertrain also being carried over, and was later rebadged as a Peugeot in some markets. The second generation Rich

513-540: A maximum output of 166hp（122kW）and 420N·m which is 3hp more and 40N·m more compared to the Rich 6 equipped with the M9T engine. The transmission is a ZF Friedrichshafen supplied 8-speed automatic gearbox. The Rich 7 also spawned the Dongfeng Palazzo 2022 facelift. Dongfeng Peugeot-Citro%C3%ABn Dongfeng Peugeot-Citroën , formerly Dongfeng Peugeot-Citroën Automobile Co., Ltd. ( DPCA ) from 1992 to 2021,

570-495: A minor update in 2018 with the powertrain remain unchanged. The interior received a complete redesign with a 7 inch touch screen as the center piece featuring Bluetooth, phone connection, tire pressure detection, reverse radar and ESP. From the 2018 model year, 4-wheel drive models are also available. The second generation Dongfeng Rich received a facelift for the 2021 model year and was launched in January 2021. The update includes

627-420: A new electric vehicle plant. The Chengdu plant is also in operation. Its dealer network boasts nearly 300 Citroën shops in over 200 Chinese cities and about 170 Peugeot showrooms (other sales and service stores that carry and cater to Peugeots do exist). As of 2010, imported models are also sold although by a separate, wholly PSA-owned subsidiary, Peugeot Citroën (China) Automotive Trade Co Ltd. It's possible

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684-402: A peak torque of 305 Nm, matched with a 5-speed manual gearbox and a 6-speed automatic gearbox from ZF with economic, sports and snow driving mode. The four-wheel drive system is supplied by BorgWarner , but without a rear axle differential lock. The suspension structure is front double wishbone and rear leaf spring, while the elastic element is 5 pieces of variable section steel plate. In terms of

741-496: A principal disadvantage is absence of an interested and influential Chinese party. As of the 3rd Quarter of 2004, WFOEs had replaced EJVs and CJVs as follows: (*)=Financial Vventures by EJVs/CJVs (**)=Approved JVs These enterprises are formed under the Sino-Foreign Investment Act. The capital is composed of value of stock in exchange for the value of the property given to the enterprise. The liability of

798-428: A redesigned front end and revamped interior. The interior now features a 3.5 inch screen and a 7 inch full color display in the center console with reverse camera, Baidu Carlife, navigation, and online music integrated in the system. ESC is also added to the update. The diesel version is powered by a YCY24165-61 2.4-liter turbo diesel engine, producing a maximum output of 165hp（121kW）and 350N·m or torque. The petrol version

855-487: Is a business entity created by two or more parties, generally characterized by shared ownership , shared returns and risks , and shared governance. Companies typically pursue joint ventures for one of four reasons: to access a new market, particularly emerging market ; to gain scale efficiencies by combining assets and operations; to share risk for major investments or projects; or to access skills and capabilities. Most joint ventures are incorporated, although some, as in

912-404: Is allowed to enter into contracts with appropriate government authorities to acquire land use rights, rent buildings, and receive utility services. In this it is more similar to a CJV than an EJV. WFOEs are expected by PRC to use the most modern technologies and to export at least 50% of their production, with all of the investment is to be wholly provided by the foreign investor and the enterprise

969-561: Is an equally owned Chinese joint venture between the automobile manufacturers Dongfeng Motor Corporation and Stellantis (known as PSA Peugeot Citroën at the time of the formation of the joint venture). Based in Wuhan , capital of Hubei province , it manufactures Peugeot and Citroën models for sale in China . Its cars are well liked by consumers, and the Citroën brand received one of

1026-604: Is described below. The EJV Law is between a Chinese partner and a foreign company. It is incorporated in both Chinese (official) and in English (with equal validity), with limited liability. Prior to China's entry into WTO – and thus the WFOEs – EJVs predominated. In the EJV mode, the partners share profits, losses, and risk in equal proportion to their respective contributions to the venture's registered capital. These escalate upwardly in

1083-470: Is done in parallel with other activities in forming a JV. Though dealt with briefly for a shareholders' agreement , some issues must be dealt with here as a preamble to the discussion that follows. There are also many issues which are not in the Articles when a company starts up or never ever present. Also, a JV may elect to stay as a JV alone in a "quasi partnership" to avoid any nonessential disclosure to

1140-627: Is powered by a ATZD 2.4-liter gasoline engine, producing a maximum output of 158hp（116kW））and 235N·m or torque. The transmission is a 5-speed manual gearbox and both 2-wheel drive and 4-wheel drive variants are available. Due to the Dongfeng Peugeot-Citroën joint venture between PSA and Dongfeng , it was revealed in July 2017 that Dongfeng will manufacture a badge-engineered version of the Dongfeng Rich double cab pickup as

1197-470: Is what will happen if the firm is dissolved, if one of the partners dies, or if the firm is sold. Often, the most successful JVs are those with 50:50 partnership with each party having the same number of directors but rotating control over the firm, or rights to appoint the Chairperson and Vice-chair of the company. Sometimes a party may give a separate trusted person to vote in its place proxy vote of

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1254-515: Is within his total control. WFOEs are typically limited liability enterprises. Like with EJVs, but the liability of the directors, managers, advisers, and suppliers depends on the rules which govern the Departments or Ministries which control product liability, worker safety or environmental protection. An advantage the WFOE enjoys over its alternates is enhanced protection of its know-how but

1311-486: The World Trade Organization (WTO) around 2001 has had profound effects on foreign investment. Not being a JV, they are considered here only in comparison or contrast. To implement WTO commitments, China publishes from time to time updated versions of its "Catalogs Investments" (affecting ventures) prohibited, restricted. The WFOE is a Chinese legal person and has to obey all Chinese laws. As such, it

1368-464: The oil and gas industry , are "unincorporated" joint ventures that mimic a corporate entity. With individuals, when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are " co-venturers ". The venture can be a business JV (for example, Dow Corning), a project/asset JV intended to pursue one specific project only, or

1425-450: The "constitution" of a company in these countries. The articles of association regulate the interaction between shareholders and the directors of a company and can be a lengthy document of up to 700,000 or so pages. It deals with the powers relegated by the stockholders to the directors and those withheld by them, requiring the passing of ordinary resolutions , special resolutions and the holding of Extraordinary General Meetings to bring

1482-459: The DOC data, foreign joint ventures of U.S. companies realized a 5.5 percent average return on assets (ROA), while those companies' wholly owned and controlled affiliates (the vast majority of which are wholly owned) realized a slightly lower 5.2 percent ROA. The same story holds true for investments by foreign companies in the U.S., but the difference is more pronounced. U.S.-based joint ventures realized

1539-640: The Founder at board meetings. Recently, in a major case the Indian Supreme Court has held that Memorandums of Understanding (whose details are not in the articles of association) are "unconstitutional" giving more transparency to undertakings. A JV is not a permanent structure. It can be dissolved when: Joint ventures are risky forms of business partnerships . Literature in business and management has paid attention to different factors of conflict and opportunism in joint ventures, in particular

1596-464: The JV's life, giving the option to the foreign investor, by holding higher equity, obtains a faster rate of return with the concurrent wish of the Chinese partner of a later larger role of maintaining long-term control. The parties in any of the ventures, EJV, CJV or WFOE prepare a feasibility study outlined above. It is a non-binding document – the parties are still free to choose not to proceed with

1653-641: The Peugeot Pickup, and the rebadged pickup would be on sale in Africa starting from September 2017. Peugeot replaced it at the beginning of 2021 with the Peugeot Landtrek . A more upmarket model named the Rich 6 was launched in 2017 selling alongside the regular Dongfeng Rich. It is based on the third generation Nissan Navara with only the front end restyled. It is also available as an EV with

1710-639: The Stellantis models these private label cars are based on. The Peugeot and Citroën brands separately tried to enter the China market in the 1980s. Citroën sold the CX model in 1984, and it even appeared in a Chinese film. At the time, Citroën was competing with Volkswagen for the "large car" contract with SAIC Motor , and Volkswagen won, investing $ 2 Billion in the China market from 1984 to 1998. Peugeot also saw lackluster results. In 1985, it established

1767-536: The US) covering know-how and trademarks and supply-of-equipment agreements. The minimum equity is prescribed for investment truncated, where the foreign equity and debt levels are: There are also intermediary levels. The foreign investment in the total project must be at least 25%. No minimum investment is set for the Chinese partner. The timing of investments must be mentioned in the Agreement and failure to invest in

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1824-461: The cases, the status of the formed enterprise is that of a legal Chinese person which can hire labor directly as, for example, a Chinese national contactor. The minimum of the capital is registered at various levels of investment. Other differences from the EJV are to be noted: Convenience and flexibility are the characteristics of this type of investment. It is therefore easier to find co-operative partners and to reach an agreement. With changes in

1881-658: The completion of this factory, total yearly production capacity will approach one million whole vehicles. A Xiangyang production base makes engines with capacity in excess of one million, yearly, and has been operational since 1996. Stellantis has two facilities in Shanghai —an R&D center (the China Tech Center) and a design center. As of 2023, only one production plant is still in operation in Wuhan (Plant 3), with Plant 1 being converted to commercial development and Plant 2 being sold to Dongfeng-Honda for

1938-570: The death of Mao Zedong in 1976, initiatives in foreign trade began to be applied, and law applicable to foreign direct investment was made clear in 1979, while the first Sino-foreign equity venture took place in 2001. The corpus of the law has improved since then. Companies with foreign partners can carry out manufacturing and sales operations in China and can sell through their own sales network. Foreign-Sino companies have export rights which are not available to wholly Chinese companies, as China desires to import foreign technology by encouraging JVs and

1995-503: The directors' decision to bear. A Certificate of Incorporation or the Articles of Incorporation is a document required to form a corporation in the U.S. (in actuality, the state where it is incorporated) and in countries following the practice. In the US, the "constitution" is a single document. The Articles of Incorporation is again a regulation of the directors by the stock-holders in

2052-471: The following major ways: In the UK , India , and in many common law countries, a joint-venture (or else a company formed by a group of individuals) must file its memorandum of association with the appropriate authority. This is a statutory document which informs the public of its existence. It may be viewed by the public at the office in which it is filed. Together with the articles of association , it forms

2109-423: The government or the public. Some of the issues in a shareholders' agreement are: There are many features which have to be incorporated into the shareholders' agreement which is quite private to the parties as they start off. Normally, it requires noтуОЧ submission to any authority. The other basic document which must be articulated is the Articles, which is a published document and known to members. This repeats

2166-412: The highest scores in a 2014 customer satisfaction survey done by JD Power in China. Not all Stellantis products sold in China were sold or manufactured by its joint venture with Dongfeng; DS Automobiles models were once the domain of the former Changan PSA joint venture with Changan Automobile . DPCA also produces Dongfeng Fengshen -branded consumer vehicles in the same factories that manufacture

2223-648: The hopes of establishing a joint venture but was rebuffed leading to the same offer being afforded Citroën. Talks were reported to have taken place in Paris as early as the last 1980s with agreement reached in 1990. However, the project was delayed by two years due to French government resistance following the Tiananmen Square massacre , and it only came off the ground in 1992. Initially referred to as Dongfeng Citroën Automobile Company (DCAC), this joint venture company situated itself in Wuhan . Its first product

2280-567: The indicated time, draws a penalty. Co-operative Joint Ventures (CJVs) are permitted under the Sino-Foreign Co-operative Joint Ventures. Co-operative enterprises are also called Contractual Operative Enterprises. The CJVs may have a limited structure or unlimited – therefore, there are two versions. The limited-liability version is similar to the EJVs in status of permissions – the foreign investor provides

2337-602: The influence of parent control structure, ownership change, and volatile environment. Government procurement regulations, such as the Federal Acquisition Regulation (FAR) in the United States, may specify how joint ventures are to be approached as suppliers or confirm that a joint venture or other form of contractor partnering is seen as a "desirable" arrangement for supplying to government. The FAR states that The Government will recognize

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2394-405: The integrity and validity of contractor team arrangements [including joint ventures], provided the arrangements are identified and company relationships are fully disclosed in an offer or, for arrangements entered into after submission of an offer, before the arrangement becomes effective. The Government will not normally require or encourage the dissolution of contractor team arrangements. Under

2451-476: The joint venture held with equal equity between its French and Chinese parents, but it wasn't until 2004 that Chinese and French banks relaxed their grip on the firm and true 50% ownership stakes were each taken by Dongfeng and PSA Peugeot Citroën. While most current offerings are versions of cars available in other markets, some vehicles have been tailored to better suit local demand such as changing hatchbacks to three-box designs . At least one car, sold under

2508-719: The latest technologies. Under Chinese law, foreign enterprises are divided into several basic categories. Of these, five will be described or mentioned here: three relate to industry and services and two as vehicles for foreign investment. Those five categories of Chinese foreign enterprises are: the Sino-Foreign Equity Joint Ventures (EJVs), Sino-Foreign Co-operative Joint Ventures (CJVs), Wholly Foreign-Owned Enterprises (WFOE), although they do not strictly belong to Joint Ventures, plus foreign investment companies limited by shares (FICLBS), and Investment Companies through Foreign Investors (ICFI). Each category

2565-480: The law, it becomes possible to merge with a Chinese company for a quick start. A foreign investor does not need to set up a new corporation in China. Instead, the investor uses the Chinese partner's business license, under a contractual arrangement. However, under the CJV, the land stays in the possession of the Chinese partner. There is another advantage: the percentage of the CJV owned by each partner can change throughout

2622-402: The majority of funds and technology and the Chinese party provides land, buildings, equipment, etc. However, there are no minimum limits on the foreign partner which allows him to be a minority shareholder. The other format of the CJV is similar to a partnership where the parties jointly incur unlimited liability for the debts of the enterprise with no separate legal person being created. In both

2679-569: The name Citroën C2, appears to have been reworked extensively; confusingly the Chinese version C2 seems to have been a rebadged Peugeot model—not the "actual" Citroën C2 . As of 2010, the joint venture has three production bases—all in Hubei province . A fourth was set to become operational c. 2016 in Chengdu , Sichuan province , increasing production capacity by 300,000 units per year. With

2736-478: The off-road capabilities, the approach angle, departure angle and minimum ground clearance of Rich 6 is 31°, 20°, and 207mm. The Rich 6 is equipped with 255/70 R16 tires, with front disc brakes and rear drum brakes as standard. Launched in June 2022, the Rich 7 is a more premium variant of the Rich 6, featuring a more civilian front end design. The Rich 7 model equipped with the M9T 2.3-liter turbo diesel engine produces

2793-474: The project. The feasibility study must cover the fundamental technical and commercial aspects of the project, before the parties can proceed to formalize the necessary legal documentation. The study should contain details referred to earlier under Feasibility Study (submissions by the Chinese partner). There is basic law of the PRC concerning enterprises with sole foreign investment controls, WFOEs. China's entry into

2850-477: The remaining equity stakes held by banks resulting in each vehicle-maker holding 50% ownership of the joint venture. After the IPO , the stake held by Dongfeng Motor Corporation was transferred to Dongfeng Motor Group . In a rare move for the industry, 2014 saw Dongfeng Motor Group take a 14% stake in the then-ailing PSA Peugeot Citroën , a parent company of DPCA. Joint venture A joint venture ( JV )

2907-549: The rules applicable to public procurement in the European Union , public bodies may insist that suppliers intending to provide goods and services through a joint partnership accept joint liability for the execution of the contract. According to a 2003 report of the United Nations Conference on Trade and Development , China was the recipient of US$ 53.5 billion in direct foreign investment, making it

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2964-440: The same proportion as the increase in registered capital. The JV contract accompanied by the articles of association for the EJV are the two most fundamental legal documents of the project. The Articles mirror many of the provisions of the JV contract. In case of conflict the JV document has precedence. These documents are prepared at the same time as the feasibility report. There are also the ancillary documents (termed "offsets" in

3021-435: The shareholders agreement as to the number of directors each founder can appoint to the board of directors; whether the board controls or the founders; the taking of decisions by simple majority (50%+1) of those present or a 51% or 75% majority with all directors present (their alternates/ proxy ); the deployment of funds of the firm; extent of debt; the proportion of profit that can be declared as dividends; etc. Also significant

3078-437: The situation has changed as of 2015 since in that year Groupe PSA signed an agreement with Dongfeng to sell some imports. Ownership of the joint venture has evolved since its establishment in 1992. In 2000, ownership was: 31%, Dongfeng Motor Corporation; 39%, Chinese banks; 26.9%, PSA Peugeot Citroën; 3.1%, international banks. In 2002, both Dongfeng and PSA Peugeot Citroën took equal 32% shares, and by 2004 they had bought out

3135-426: The world's largest recipient of direct foreign investment for the first time, to exceed the US. Also, it approved the establishment of nearly 500,000 foreign-investment enterprises. The US had 45,000 projects by 2004 with an in-place investment of over 48 billion. Until recently, no guidelines existed on how foreign investment was to be handled due to the restrictive nature of China toward foreign investors. Following

3192-561: Was a hatchback built from semi-complete knock-down kits, the ZX Fukang , and by 1996 production capacity had reached 150,000 units/year with a second offering, the Fukang 988 sedan, being added in 1998. The project may not have seen great success due to a limited product line and delays from the beginning. In addition, early reliance on Shanghai's industrial base (and with it stretched supply chains ) for locally sourced parts may have proved

3249-682: Was launched in December 2014 with the front and rear end of the truck completely restyled and the interior updated. An update was launched in March 2017 to fulfill the National V emissions standard. The update features a powertrain with a 2.5-liter turbo diesel engine developing 140hp and 305N·m of torque, which is 24hp more and 25N·m more than the original version. The transmission is a 6-speed manual gearbox and both 2-wheel drive and 4-wheel drive variants are available. The second generation Rich received

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