(Yicai Global) Oct. 26 -- Dongfeng Peugeot-Citroen Automobile is to bring out 14 new types of vehicles over the next five years as a last-gasp attempt by the floundering French-Chinese joint venture to save itself.

The JV between Groupe PSA and Dongfeng Motor needs to overcome key problems in its products, marketing, services and operations that are hampering development and to define its future direction, the firm’s new general manager Chen Bin said at the weekend.

Dongfeng Peugeot-Citroen has been suffering a free fall in sales since sales peaked at 700,000 units in 2016. Last year the Wuhan-based company shifted just 113,600 vehicles and this number might shrink to 50,000 this year, partly due to the negative impact of the Covid-19 pandemic. It logged net losses of CNY1.3 billion (USD194.1 million) in the first half.

The rescue plan, launched just 50 days after Chen took office, will involve more economical and fuel-saving products and re-define the positioning of the marques Dongfeng Peugeot and Dongfeng Citroen in the Chinese market, he said.

It will introduce a seven-day return policy, a one-year price protection period for new cars and a five-year warranty in order to boost user confidence in the company's products, he added. It will also seek to improve the efficiency of the company's internal and external operations to more quickly respond to customer needs, he said.

The Chinese and French partners have also banded together to help get it out of trouble. Rueil-Malmaison-based Groupe PSA will provide the JV with EUR50 million (USD59 million) in the fourth quarter while Dongfeng Motor will supplement its working capital. They also plan to increase the registered capital and number of shares in the JV in the first quarter next year.

Editors: Tang Shihua, Kim Taylor