* Changan Auto relationship with Peugeot unchanged
* Sale of stake is worth $320 mln - property exchange
* Venture makes Citroen's upscale DS models
BEIJING, Nov 29 China's Changan Automobile Group
is selling its 50 percent stake in a car venture with PSA
Peugeot Citroen to its listed unit, Chongqing Changan
Automobile Co, sources with direct knowledge of the
matter said, in a sale worth 2 billion yuan ($320 million).
An executive at the Chinese parent company said the move was
aimed at streamlining its business and the group's relationship
with the French car maker remains unchanged. He declined to be
identified because he is not allowed to talk to the media.
The value of the transaction was released in a statement to
a property exchange.
PSA Peugeot manufactures Citroen's upscale DS models through
the venture with Changan, which has an annual production
capacity of 200,000 vehicles. The French automaker also has a
partnership with Dongfeng Motor Group Co.
China's luxury car market is dominated by BMW,
Daimler AG's Mercedes-Benz and Audi AG.
A Peugeot spokeswoman in China said the shift in ownership
will not affect its operation. Media relations officials at
Changan could not be reached for comment.
The French car maker, which is struggling in Europe, aims to
expand annual China sales to 950,000 by 2015, up from the
404,000 sold last year, its Asia head Gregoire Olivier told
Reuters in an interview in June.
Changan also makes cars in partnership with Ford Motor Co
and Mazda Motor Corp. All foreign car makers
producing cars in China must do so through a joint venture with
a local firm.