The announcement, which comes as the brands mark the first anniversary of their strategic partnership signed in March 2014, will also see the development of a joint R&D centre based in Shanghai that will be dedicated to developing products and technologies for fast-growing Asian markets.

The carmakers said the new ‘Common Modular Platform’ (CMP) will become their new generation platform for the B and C-segments and will cost around €200m, of which 60% will be committed by PSA and 40% by Dongfeng.

A statement by the brands added: “The new platform will enable PSA Peugeot Citroën and DFG to manufacture vehicles in their respective growth regions. In China and the ASEAN countries, PSA Peugeot Citroën will benefit in particular from DFG's supplier base expertise, which will make it possible to meet ambitious cost targets in highly competitive segments.”