PSA announces €530 million investment in Brazil
The carmaker has said that it plans to invest €530 million between now and 2012 to develop its operations in Brazil to develop new Peugeot and Citroen vehicles and new engines. The investment will also be used to increase production capacity at the Porto Real plant.
Chairman Philippe Varin announced the investment programme at a ceremony attended by Sergio Cabral, Governor of Rio de Janeiro State, where the group's production plant is located.
'Latin America and particularly Brazil play a fundamental role in enabling us to achieve our goal of becoming a more global group,' said Philippe Varin at the ceremony. 'By deploying a solid product plan for its brands, PSA Peugeot Citroen has laid the groundwork for its future development in this region. Peugeot is launching the Hoggar compact pick-up truck at the end of first-half 2010 and Citroen is preparing the roll-out of a new model for the second half. At the same time, we're going to increase production capacity at our Porto Real plant.'
PSA Peugeot Citroen is Brazil's fifth largest carmaker and has had manufacturing operations in the country since 2001, when the Porto Real production facility was brought on stream. The plant has already produced more than 700,000 vehicles and currently manufactures the Peugeot 207, 207 SW and 207 Passion and the Citroen C3 and Xsara Picasso. Opened in 2002, the engine unit produces 1.4-litre and 1.6-litre flex-fuel and petrol engines.
The new investment comes in addition to other recent initiatives by the group to strengthen its presence in Brazil and, more generally, Latin America, and to speed its development in fast-growing regions. In July 2009, PSA Peugeot Citroen inaugurated a new engine machining unit at the Porto Real plant. In January 2010, the group hired 700 people to create a third production shift in response to growing demand in the Latin American automobile market.
In 2009, the group sold 151,200 vehicles in Brazil for a 5% market share.For more of the latest industry news, click here.