Dongfeng motor is likely to expand its partnership with PSA, including reintroducing opel to China, following the merger of PSA and fiat Chrysler group.

Dongfeng group reached a new agreement with PSA on December 19, extending the cooperation period of its joint venture dpca, Reuters reported. Under the agreement, dpca will license PSA's new brand in China in the future and will benefit from the new technology and intellectual property rights of the new PSA/FCA company.

Dongfeng said dpca would have exclusive rights to opel vehicles and the right to import auto parts from PSA at lower prices if the two sides agreed to bring the opel brand to China.

According to the public information, opel entered the Chinese market in 1993 and officially withdrew in 2015. PSA bought the opel/vauxhall brand from general motors in 2017 and turned the business around in 2018. Opel, which includes the vauxhall brand, made a profit of 700 million euros (5.45 billion yuan) in the first half of 2019.