Peugeot Citroen has teamed up with Harbin Hafei Automobile Industry Group Co to form a US$265.61-million (RMB2 billion) joint venture to produce vans, China Auto News reported. The 50-50 venture is the second Chinese joint venture for Europe’s second largest automaker. The formal contract will be signed by the end of the year and the first model is expected to be launched next year. The joint venture with Harbin Hafei is expected to help Peugeot Citroen achieve its sales target of one million vehicles in China by 2015, which would translate into a 5% to 6% market share. It sold 210,000 vehicles in China last year with the Peugeot 307 and the C-Triomphe sedans topping the sales list. It plans to double the capacity of its Wuhan plant to 400,000 by 2009 and to 600,000 by 2012. Peugeot Citroen also has a deal with Dongfeng Motor Co – China’s third largest automaker – to make passenger cars. A third plant with Dongfeng Motor is expected.