China’s Chongqing Changan Automobile has agreed to sell its $234.22 million US stake in its joint venture with Groupe PSA to a subsidiary of Baoneng, the company said in a statement last week. A spokesman for PSA also confirmed last week that the company would sell its stake in CAPSA to the Baoneng subsidiary.

The eight-year-old joint venture, Shenzhen-based CAPSA, builds cars under PSA’s premium DS brand and has struggled with falling sales. Shenzhen Qianhai Ruizhi Investment, the Baoneng subsidiary, has paid the first instalment for the deal, the statement said.

PSA has tried to compete with BMW, Mercedes Benz and other luxury car brands in the Chinese market since the company introduced the DS brand in China in 2012.