The story
One of the first foreign-Chinese joint auto-making ventures, over its eleven-year lifespan the company only recorded production of about 100,000 cars.
Manufacturing two models originally sold via fleet sales, its products were mostly used as taxis or by government employees. Fleet sales commenced in 1989, with a model line comprising the Peugeot 505 (1980 design) and 504 (1968 design).
Conflict
Component localization targets, set to encourage creation of a local supply chain, exacerbated tensions. They were met late if at all, and while the French initially profited from parts sales, Chinese consumers saw increased component localization from inexperienced suppliers lead to inferior products. In spite of Chinese resistance, Peugeot repatriated profits, and cultural conflicts continued throughout. By 1993, a soured Peugeot saw its now-inferior models out-completed by better offerings with sales dropping to 2,544 while competing Shanghai VW built no less than 146,000 cars—fifty percent of the overall market. By 1996, the Guangzhou government decided it no longer wanted a French foreign partner. Peugeot removed itself in 1997, and Guangzhou Automotive chose to begin a new joint venture with Honda.
From Wikipedia’s article on Guangzhou Peugeot Automobile Company, shared under CC BY-SA 4.0.3